RenaissanceRe(RNR) - 2024 Q4 - Annual Report

Premiums and Revenue Growth - Total gross premiums written for 2024 reached $11,733,066, a 32.1% increase from $8,862,366 in 2023[28] - The Property segment generated gross premiums of $4,823,731, accounting for 41.1% of total premiums written in 2024, compared to 40.2% in 2023[28] - The Casualty and Specialty segment contributed $6,909,335 in gross premiums, representing 58.9% of total premiums written in 2024, up from 59.8% in 2023[28] - In 2024, gross premiums written in the Property segment totaled $4,823,731, a 35.3% increase from $3,562,414 in 2023[31] - The Casualty and Specialty segment reported gross premiums written of $6,909,335 in 2024, a 30.4% increase from $5,299,952 in 2023[36] - The total gross premiums written across both segments reached $11,733,066 in 2024, a 32.3% increase from $8,862,366 in 2023[42] Underwriting and Risk Management - The company aims to enhance its underwriting income through disciplined risk selection and superior customer relationships[19] - The management team emphasizes the importance of superior capital management to optimize returns for shareholders[25] - The company utilizes risk management tools to monitor capital and liquidity positions on a consolidated basis and for each major operating subsidiary[84] - The company has integrated climate change considerations into its ERM process, continuously adjusting risk management models to reflect higher risk levels[88] - The company believes that changes in climate conditions have increased the severity and frequency of natural disasters, impacting its economic exposures[86] Strategic Initiatives and Acquisitions - The company is exploring diversification into new ventures through organic growth and potential acquisitions[17] - A recent acquisition of Validus Holdings is expected to contribute an additional $300 million in gross premiums written annually, enhancing the company's competitive position[152] - The company actively pursues strategic investments to enhance risk access and market information, including investments in Tower Hill Companies and TWFG[67] Financial Performance and Ratios - The combined ratio improved to 95%, indicating profitable underwriting prior to investment income considerations, compared to 98% in the previous year[154] - The net claims and claim expense ratio was reported at 60%, reflecting effective claims management and lower loss ratios[154] - The company reported a significant increase in gross premiums written, totaling $1.5 billion for the year ended December 31, 2024, representing a 15% increase year-over-year[155] Capital Management and Liquidity - The company focuses on maintaining financial strength ratings and managing capital effectively to support underwriting opportunities[10] - The capital management business generates management and performance fee income, contributing to a less volatile income source compared to underwriting[45] - RenaissanceRe's liquidity needs for the next 12 months are expected to be met by cash receipts from operations, although future cash flows may fluctuate significantly[407] - The company maintains various credit facilities and trusts to access liquidity and satisfy collateral requirements, which may impact liquidity[409] Regulatory Environment - RenaissanceRe's U.S. subsidiary, Renaissance Reinsurance U.S., is licensed in all 50 states and is subject to significant regulatory oversight[123] - The Bermuda Monetary Authority (BMA) has established a target capital level of 120% of the applicable Enhanced Capital Requirement (ECR) for certain registration categories[120] - The Corporate Income Tax Act 2023 will impose a 15% corporate income tax on profits generated in Bermuda starting January 1, 2025[122] Investment Portfolio - The investment portfolio emphasizes capital preservation and liquidity, with a focus on highly-rated fixed income securities and short-term investments[66] - Total investments increased by $3,423,313, reaching $32,639,456 in 2024, up from $29,216,143 in 2023[434] - U.S. treasuries accounted for 33.7% of total investments, increasing from 34.4% in the previous year, with a total value of $11,001,893[434] Employee and Operational Growth - The company employs 945 people worldwide as of February 7, 2025, an increase from 925 in February 2024 and 731 in February 2023[104] - Corporate expenses rose by $7.1 million to $134.8 million in 2024, primarily due to costs associated with the Validus Acquisition[390] Future Outlook - Future guidance indicates an expected growth in net premiums written by 10% for the upcoming fiscal year, driven by market expansion strategies[155] - The company plans to expand its market presence in Asia, targeting a 20% increase in market share within the next two years[153]