RenaissanceRe(RNR) - 2025 Q4 - Annual Report

Premiums and Segments - Total gross premiums written for the year ended December 31, 2025, reached $11,738,420, a slight increase from $11,733,066 in 2024 and a significant rise from $8,862,366 in 2023[27] - The Property segment generated gross premiums of $4,942,141, accounting for 42.1% of total gross premiums written in 2025, compared to 41.1% in 2024 and 40.2% in 2023[27] - The Casualty and Specialty segment contributed $6,796,279 in gross premiums, representing 57.9% of total gross premiums written in 2025, down from 58.9% in 2024 and 59.8% in 2023[27] - Property segment gross premiums written increased to $4,942,141,000 in 2025, up from $4,823,731,000 in 2024, representing a growth of 2.5%[30] - Casualty and Specialty segment gross premiums written totaled $6,796,279,000 in 2025, a decrease from $6,909,335,000 in 2024, reflecting a decline of 1.6%[34] - The U.S. and Caribbean represented 26.9% of total Property segment gross premiums written in 2025, slightly increasing from 25.5% in 2024[40] - 81.5% of Property segment gross premiums written were generated through subsidiaries and affiliates of the largest brokers, with Aon plc contributing 44.2% and Marsh & McLennan Companies, Inc. contributing 30.4%[103] Underwriting and Risk Management - The underwriting income is driven by three main sources: underwriting income, fee income, and investment income, with a focus on maintaining a disciplined approach to risk selection[19] - The company utilizes a combination of proprietary data sets and sophisticated risk modeling capabilities to enhance risk selection and underwriting performance[23] - The company’s exposure to catastrophe risk is managed through reinsurance purchases to optimize underwriting portfolio outcomes[32] - The company utilizes a proprietary pricing and exposure management system, REMS©, to assess risk and return for each reinsurance contract, enhancing underwriting and risk management capabilities[74] - The company actively integrates climate-related risk considerations into its ERM process, adjusting risk management models to reflect higher levels of risk[89] - The company’s risk management framework operates through a three lines model, ensuring effective oversight and independent assurance of risk management practices[85] - The frequency of claims has shown an upward trend, necessitating a review of underwriting practices[161] Financial Performance and Strategy - The company aims to achieve long-term growth in tangible book value per common share plus accumulated dividends, which is considered the most appropriate measure of financial performance[20] - The financial strength and competitive advantages position the company to effectively manage capital and pursue profitable business opportunities[24] - The company is committed to enhancing its enterprise risk management framework to better navigate market uncertainties[160] - The combined ratio for the period was below 100%, indicating profitable underwriting prior to investment income considerations[161] - The company maintained a strong underwriting capacity, allowing for increased risk acceptance and business growth[165] Investments and Capital Management - The company’s investment unit manages and invests funds generated by consolidated operations, contributing to overall financial performance[38] - The investment portfolio emphasizes capital preservation and liquidity, generating attractive returns on a risk-adjusted basis over time[67] - The majority of the investment portfolio consists of highly-rated fixed income securities, with significant short-term investments and exposure to higher-risk assets like catastrophe bonds[69] - The company is actively managing foreign currency exposures through forward and option contracts to mitigate risks associated with non-U.S. dollar denominated assets[391] - The company is exploring new market opportunities through strategic acquisitions and partnerships to enhance growth[160] Regulatory and Compliance - The company is subject to a new 15% corporate income tax in Bermuda starting from January 1, 2025, affecting profits generated after this date[124] - Regulatory compliance includes submitting quarterly financial returns and annual filings to the BMA, ensuring adherence to solvency and liquidity standards[117] - RREAG must comply with capital, solvency, and reserve requirements under the Swiss Solvency Test, and is believed to have exceeded the minimum requirements as of December 31, 2025[150] - RREAG is required to submit an annual report, including audited financial statements, to FINMA each year[155] Employee and Organizational Development - The total number of employees increased to 1,040 as of February 6, 2026, up from 945 in the previous year, indicating a growth of approximately 10%[105] - The company employs a structured approach to talent acquisition and development, investing in leadership development programs to enhance skills across the organization[106] - RenaissanceRe's commitment to inclusion focuses on supporting talent development and empowering high-performing teams[108] - The company is actively engaged in monitoring employee satisfaction through engagement and culture surveys, using insights to inform targeted actions[107] Claims and Expenses - The company reported a significant increase in claims reserves, reflecting an estimated cost of claims and related expenses[161] - Acquisition expenses increased, driven by higher commissions and administrative costs associated with new business[160] - The company is actively managing additional case reserves to account for specific claims, ensuring financial stability[160] - The reserve for claims and claim expenses was $22.30 billion, with $5.18 billion expected to be paid within the next year[423] Financial Results and Cash Flow - Net realized and unrealized gains on investments increased by $1.2 billion, primarily driven by $886.6 million in fixed maturity-related investments due to decreasing market yields in 2025[392] - Cash flows provided by operating activities in 2025 were $3.69 billion, a decrease from $4.16 billion in 2024[427] - Cash flows used in investing activities were $2.22 billion in 2025, primarily due to net purchases of equity investments totaling $1.6 billion[429] - Cash flows used in financing activities in 2025 were $1.41 billion, which included common share repurchases of $1.6 billion[430] - The net increase in cash and cash equivalents for 2025 was $54.6 million, resulting in a total of $1.73 billion at year-end[428]