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STOCK INCENTIVE COMPENSATION AND EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK INCENTIVE COMPENSATION AND EMPLOYEE BENEFIT PLANS | STOCK INCENTIVE COMPENSATION AND EMPLOYEE BENEFIT PLANS Stock Incentive Compensation Plans and Awards The Company is authorized to issue restricted stock awards, restricted stock units, performance share awards, stock options and other share-based awards to its employees and directors pursuant to various stock incentive compensation plans. On May 16, 2022, the Company’s shareholders approved the Company’s First Amended and Restated 2016 Long-Term Incentive Plan, which amended and restated the plan initially approved by the shareholders in May 2016 (as amended from time to time, the “2016 Long-Term Incentive Plan”). The Company is authorized to issue up to 3,060,092 common shares pursuant to the 2016 Long-Term Incentive Plan. The 2016 Long-Term Incentive Plan permits the grant of restricted stock awards, restricted stock units, performance share awards (including cash-based performance awards), stock options and other share-based awards to employees, officers, non-employee directors and consultants or advisors of the Company and its affiliates. In November 2016, the Company instituted a cash settled restricted stock unit (“CSRSU”) plan, the 2016 Restricted Stock Unit Plan, which allows for the issuance of equity awards in the form of CSRSUs. There are currently no outstanding awards under this plan. Restricted Stock Awards Restricted stock awards granted to employees under the 2016 Long-Term Incentive Plan generally vest ratably over a four-year period. Restricted stock awards granted to non-employee directors generally vest ratably over a three-year period. Performance Share Awards Performance share awards granted to certain of the Company’s executive officers pursuant to the 2016 Long-Term Incentive Plan are subject to vesting conditions based on both continued service and the attainment of pre-established performance goals. If performance goals are achieved, the performance share awards will vest up to a maximum of 200% of target. Performance share awards generally cliff vest at the end of a three-year vesting period based on the attainment of performance goals over the three-year performance period. Performance Share Awards Granted in March 2019 Performance share awards granted in March 2019 had a performance condition, which was the percentage change in the Company’s tangible book value per common share plus change in accumulated dividends, or, in the event of a change in control, a market condition, which was the Company’s total shareholder return relative to its peer group. Performance Share Awards Granted Beginning in March 2020 Beginning with awards granted in March 2020, performance share awards have performance conditions, which are the average percentage change in the Company’s book value per common share plus change in accumulated dividends over three years and the three-year average underwriting expense ratio rank compared to peers, or, in the event of a change in control, a market condition, which is the Company’s total shareholder return relative to its peer group. The performance conditions are calculated in accordance with the terms of the applicable award agreement. Performance Share Awards Granted to CEO in November 2023 On November 7, 2023, the Board of Directors granted performance-based restricted stock awards to the Company’s Chief Executive Officer. The performance condition is the average percentage change in the Company’s tangible book value per common share plus change in accumulated dividends over four years, commencing on January 1, 2023 and ending on December 31, 2026, or, in the event of a change in control, a market condition, which is the Company’s total shareholder return relative to its peer group. The performance conditions are calculated in accordance with the terms of the applicable award agreement. Valuation Assumptions Performance Share Awards Granted in March 2019 For performance share awards granted in March 2019, the performance metric related to the percentage change in tangible book value per share plus change in accumulated dividends which is classified as a performance condition under FASB ASC Topic 718, Compensation - Stock Compensation. As a result, the fair value of the performance share awards was determined based on the fair market value of RenaissanceRe’s common shares on the grant date. The estimated fair value of performance share awards was amortized as an expense over the requisite service period. Performance Share Awards Granted Beginning in March 2020 For performance share awards granted beginning in March 2020, the performance metrics relate to (i) the percentage change in book value per share plus change in accumulated dividends and (ii) average underwriting expense ratio rank compared to peers, both of which are classified as performance conditions under FASB ASC Topic 718, Compensation - Stock Compensation. As a result, the fair value of the performance share awards is determined based on the fair market value of RenaissanceRe’s common shares on the grant date. The estimated fair value of performance share awards is amortized as an expense over the requisite service period. Restricted Stock Awards The fair value of restricted stock awards is determined based on the fair market value of RenaissanceRe’s common shares on the grant date. The estimated fair value of restricted stock awards is amortized as an expense over the requisite service period. The Company has elected to recognize forfeitures as they occurred rather than estimating service-based forfeitures over the requisite service period. Summary of Stock Compensation Activity Performance Share Awards The following table provides a roll forward of the Company’s unvested performance share awards:
|  | Number of Shares (1) |  | Weighted Average Grant Date Fair Value |
| Nonvested at December 31, 2021 | 141,068 |  |  | $ | 163.98 |  |
| Awards granted | 69,548 |  |  | 145.49 |  |
| Awards forfeited | (19,352) |  |  | — |  |
| Nonvested at December 31, 2022 | 191,264 |  |  | $ | 159.07 |  |
| Awards granted | 160,796 |  |  | 211.18 |  |
| Awards vested | (38,846) |  |  | 170.40 |  |
| Awards forfeited | (26,994) |  |  | — |  |
| Nonvested at December 31, 2023 | 286,220 |  |  | $ | 185.73 |  |
| Awards granted | 50,654 |  |  | 223.35 |  |
| Awards vested | (53,083) |  |  | 162.61 |  |
| Awards forfeited | (2,793) |  |  | — |  |
| Nonvested at December 31, 2024 | 280,998 |  |  | $ | 197.11 |  |
(1) For performance share awards, the number of shares is stated at the maximum number that can be attained if the performance conditions are fully met. Forfeitures represent shares forfeited due to vesting below the maximum attainable as a result of the Company not fully meeting the performance conditions. Restricted Stock Awards The following table provides a roll forward of the Company’s unvested restricted stock awards:
|  | Employee Restricted Stock Awards |  | Non-Employee Director Restricted Stock Awards |  | Total Restricted Stock Awards |
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value |
| Nonvested at December 31, 2021 | 623,332 |  |  | $ | 153.02 |  |  | 20,601 |  |  | $ | 162.60 |  |  | 643,933 |  |  | $ | 153.32 |  |
| Awards granted | 354,887 |  |  | 143.86 |  |  | 12,721 |  |  | 145.77 |  |  | 367,608 |  |  | 143.92 |  |
| Awards vested | (242,628) |  |  | 148.30 |  |  | (12,307) |  |  | 159.20 |  |  | (254,935) |  |  | 148.83 |  |
| Awards forfeited | (22,795) |  |  | — |  |  | — |  |  | — |  |  | (22,795) |  |  | — |  |
| Nonvested at December 31, 2022 | 712,796 |  |  | $ | 150.19 |  |  | 21,015 |  |  | $ | 154.40 |  |  | 733,811 |  |  | $ | 150.31 |  |
| Awards granted | 378,994 |  |  | 199.24 |  |  | 9,064 |  |  | 215.79 |  |  | 388,058 |  |  | 199.65 |  |
| Awards vested | (279,363) |  |  | 151.15 |  |  | (11,861) |  |  | 161.56 |  |  | (291,224) |  |  | 151.57 |  |
| Awards forfeited | (15,278) |  |  | — |  |  | — |  |  | — |  |  | (15,278) |  |  | — |  |
| Nonvested at December 31, 2023 | 797,149 |  |  | $ | 172.74 |  |  | 18,218 |  |  | $ | 180.70 |  |  | 815,367 |  |  | $ | 172.91 |  |
| Awards granted | 260,209 |  |  | 234.94 |  |  | 8,645 |  |  | 223.66 |  |  | 268,854 |  |  | 234.69 |  |
| Awards vested | (293,175) |  |  | 164.67 |  |  | (10,749) |  |  | 177.16 |  |  | (303,924) |  |  | 165.11 |  |
| Awards forfeited | (17,694) |  |  | — |  |  | — |  |  | — |  |  | (17,694) |  |  | — |  |
| Nonvested at December 31, 2024 | 746,489 |  |  | $ | 197.26 |  |  | 16,114 |  |  | $ | 207.95 |  |  | 762,603 |  |  | $ | 197.49 |  |
There were 0.8 million shares available for issuance under the 2016 Long-Term Incentive Plan at December 31, 2024. The aggregate fair value of restricted stock awards and performance share awards vested during 2024 was $82.8 million (2023 - $70.0 million, 2022 - $38.8 million). In connection with share vestings, there was a $2.0 million excess windfall tax benefit realized by the Company in 2024 (2023 - $1.7 million, 2022 - $0.1 million). The total stock compensation expense recognized in the Company’s consolidated statements of operations during 2024 was $71.4 million (2023 - $60.3 million, 2022 - $45.2 million). As of December 31, 2024, there was $107.6 million of total unrecognized compensation cost related to restricted stock awards and $17.8 million related to performance share awards, which will be recognized on a weighted average basis during the next 1.8 years and 1.8 years, respectively. All of the Company’s employees are eligible for defined contribution pension plans. Contributions are primarily based upon a percentage of eligible compensation. The Company contributed $12.0 million to its defined contribution pension plans in 2024 (2023 - $9.5 million, 2022 - $6.7 million).

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