Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting, Measurement Disclosures [Abstract]

SEGMENT REPORTING

The Company’s reportable segments are defined as follows: (1) Property, which is comprised of catastrophe and other property reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit, and (2) Casualty and Specialty, which is comprised of casualty and specialty reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit. In addition to its reportable segments, the Company has an Other category, which primarily includes its strategic investments, investments unit, corporate expenses, capital servicing costs, noncontrolling interests, certain expenses related to acquisitions and the remnants of its former Bermuda-based insurance operations. The results of operations of the TMR Group Entities from March 22, 2019, through September 30, 2019, are reflected in the Company’s existing reportable segments for the three and nine months ended September 30, 2019.

The Company’s Property segment is managed by the Chief Underwriting Officer - Property and the Casualty and Specialty segment is managed by the Chief Underwriting Officer - Casualty and Specialty, each of whom operate under the direction of the Company’s Group Chief Underwriting Officer, who in turn reports to the Company’s President and Chief Executive Officer.

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 by segment is as follows:




Three months ended September 30, 2019	Property			Casualty and Specialty			Other			Total
Gross premiums written	$	314,400		$	546,668		$	—		$	861,068
Net premiums written	$	302,982		$	401,148		$	—		$	704,130
Net premiums earned	$	444,332		$	462,416		$	—		$	906,748
Net claims and claim expenses incurred	338,260			316,099			161			654,520
Acquisition expenses	79,521			122,654			6			202,181
Operational expenses	34,238			19,198			(21		)	53,415
Underwriting (loss) income	$	(7,687	)	$	4,465		$	(146	)	(3,368		)
Net investment income							113,844			113,844
Net foreign exchange losses							(8,275		)	(8,275		)
Equity in earnings of other ventures							5,877			5,877
Other income							1,016			1,016
Net realized and unrealized gains on investments							31,938			31,938
Corporate expenses							(13,844		)	(13,844		)
Interest expense							(15,580		)	(15,580		)
Income before taxes and redeemable noncontrolling interests										111,608
Income tax expense							(3,664		)	(3,664		)
Net income attributable to redeemable noncontrolling interests							(62,057		)	(62,057		)
Dividends on preference shares							(9,189		)	(9,189		)
Net income available to RenaissanceRe common shareholders										$	36,698

Net claims and claim expenses incurred – current accident year	$	345,880		$	319,087		$	—		$	664,967
Net claims and claim expenses incurred – prior accident years	(7,620		)	(2,988		)	161			(10,447		)
Net claims and claim expenses incurred – total	$	338,260		$	316,099		$	161		$	654,520

Net claims and claim expense ratio – current accident year	77.8		%	69.0		%				73.3		%
Net claims and claim expense ratio – prior accident years	(1.7		)%	(0.6		)%				(1.1		)%
Net claims and claim expense ratio – calendar year	76.1		%	68.4		%				72.2		%
Underwriting expense ratio	25.6		%	30.6		%				28.2		%
Combined ratio	101.7		%	99.0		%				100.4		%




Nine months ended September 30, 2019	Property			Casualty and Specialty			Other			Total
Gross premiums written	$	2,185,984		$	1,716,287		$	—		$	3,902,271
Net premiums written	$	1,411,327		$	1,244,799		$	—		$	2,656,126
Net premiums earned	$	1,160,090		$	1,208,188		$	—		$	2,368,278
Net claims and claim expenses incurred	541,217			793,533			178			1,334,928
Acquisition expenses	222,971			330,829			(186		)	553,614
Operational expenses	99,546			58,603			13			158,162
Underwriting income (loss)	$	296,356		$	25,223		$	(5	)	321,574
Net investment income							311,138			311,138
Net foreign exchange losses							(1,812		)	(1,812		)
Equity in earnings of other ventures							17,350			17,350
Other income							5,109			5,109
Net realized and unrealized gains on investments							396,586			396,586
Corporate expenses							(76,480		)	(76,480		)
Interest expense							(42,868		)	(42,868		)
Income before taxes and redeemable noncontrolling interests										930,597
Income tax expense							(20,670		)	(20,670		)
Net income attributable to redeemable noncontrolling interests							(204,091		)	(204,091		)
Dividends on preference shares							(27,567		)	(27,567		)
Net income available to RenaissanceRe common shareholders										$	678,269

Net claims and claim expenses incurred – current accident year	$	536,197		$	813,251		$	—		$	1,349,448
Net claims and claim expenses incurred – prior accident years	5,020			(19,718		)	178			(14,520		)
Net claims and claim expenses incurred – total	$	541,217		$	793,533		$	178		$	1,334,928

Net claims and claim expense ratio – current accident year	46.2		%	67.3		%				57.0		%
Net claims and claim expense ratio – prior accident years	0.5		%	(1.6		)%				(0.6		)%
Net claims and claim expense ratio – calendar year	46.7		%	65.7		%				56.4		%
Underwriting expense ratio	27.8		%	32.2		%				30.0		%
Combined ratio	74.5		%	97.9		%				86.4		%




Three months ended September 30, 2018	Property			Casualty and Specialty			Other			Total
Gross premiums written	$	301,413		$	324,264		$	—		$	625,677
Net premiums written	$	232,632		$	220,623		$	—		$	453,255
Net premiums earned	$	293,059		$	238,791		$	(1	)	$	531,849
Net claims and claim expenses incurred	265,857			144,671			(18		)	410,510
Acquisition expenses	45,524			64,238			(1		)	109,761
Operational expenses	25,577			14,976			40			40,593
Underwriting (loss) income	$	(43,899	)	$	14,906		$	(22	)	(29,015		)
Net investment income							80,696			80,696
Net foreign exchange losses							(4,566		)	(4,566		)
Equity in earnings of other ventures							7,648			7,648
Other income							497			497
Net realized and unrealized gains on investments							13,630			13,630
Corporate expenses							(6,841		)	(6,841		)
Interest expense							(11,769		)	(11,769		)
Income before taxes and redeemable noncontrolling interests										50,280
Income tax expense							(1,451		)	(1,451		)
Net income attributable to redeemable noncontrolling interests							(6,440		)	(6,440		)
Dividends on preference shares							(9,708		)	(9,708		)
Net income available to RenaissanceRe common shareholders										$	32,681

Net claims and claim expenses incurred – current accident year	$	268,022		$	151,904		$	—		$	419,926
Net claims and claim expenses incurred – prior accident years	(2,165		)	(7,233		)	(18		)	(9,416		)
Net claims and claim expenses incurred – total	$	265,857		$	144,671		$	(18	)	$	410,510

Net claims and claim expense ratio – current accident year	91.5		%	63.6		%				79.0		%
Net claims and claim expense ratio – prior accident years	(0.8		)%	(3.0		)%				(1.8		)%
Net claims and claim expense ratio – calendar year	90.7		%	60.6		%				77.2		%
Underwriting expense ratio	24.3		%	33.2		%				28.3		%
Combined ratio	115.0		%	93.8		%				105.5		%




Nine months ended September 30, 2018	Property			Casualty and Specialty			Other			Total
Gross premiums written	$	1,561,008		$	1,201,664		$	—		$	2,762,672
Net premiums written	$	884,541		$	836,267		$	—		$	1,720,808
Net premiums earned	$	722,246		$	679,271		$	(1	)	$	1,401,516
Net claims and claim expenses incurred	222,195			420,273			(88		)	642,380
Acquisition expenses	127,095			185,429			—			312,524
Operational expenses	75,933			43,121			354			119,408
Underwriting income (loss)	$	297,023		$	30,448		$	(267	)	327,204
Net investment income							208,528			208,528
Net foreign exchange losses							(11,496		)	(11,496		)
Equity in earnings of other ventures							14,331			14,331
Other income							480			480
Net realized and unrealized losses on investments							(86,415		)	(86,415		)
Corporate expenses							(21,875		)	(21,875		)
Interest expense							(35,304		)	(35,304		)
Income before taxes and redeemable noncontrolling interests										395,453
Income tax expense							(2,550		)	(2,550		)
Net income attributable to redeemable noncontrolling interests							(90,822		)	(90,822		)
Dividends on preference shares							(20,899		)	(20,899		)
Net income available to RenaissanceRe common shareholders										$	281,182

Net claims and claim expenses incurred – current accident year	$	395,067		$	444,293		$	—		$	839,360
Net claims and claim expenses incurred – prior accident years	(172,872		)	(24,020		)	(88		)	(196,980		)
Net claims and claim expenses incurred – total	$	222,195		$	420,273		$	(88	)	$	642,380

Net claims and claim expense ratio – current accident year	54.7		%	65.4		%				59.9		%
Net claims and claim expense ratio – prior accident years	(23.9		)%	(3.5		)%				(14.1		)%
Net claims and claim expense ratio – calendar year	30.8		%	61.9		%				45.8		%
Underwriting expense ratio	28.1		%	33.6		%				30.9		%
Combined ratio	58.9		%	95.5		%				76.7		%