RenaissanceRe(RNR) - 2021 Q4 - Annual Report

Financial Performance - Total gross premiums written for the year ended December 31, 2021, reached $7,833,798 thousand, a significant increase from $5,806,165 thousand in 2020, representing a growth of approximately 35%[31] - Total gross premiums written for the year ended December 31, 2021, reached $7,833,798, an increase from $5,806,165 in 2020, representing a growth of 34.8%[33] - The Property segment gross premiums written amounted to $3,958,724 in 2021, up from $2,999,142 in 2020, reflecting a growth of 32.3%[34] - The Casualty and Specialty segment gross premiums written totaled $3,875,074 in 2021, a significant increase from $2,807,023 in 2020, marking a growth of 38.1%[37] - The U.S. and Caribbean market represented 50.8% of total gross premiums written in 2021, with $2,257,088 attributed to this region[45] Business Segments - The Property segment accounted for 50.5% of gross premiums written in 2021, totaling $3,958,724 thousand, while the Casualty and Specialty segment contributed 49.5%, amounting to $3,875,074 thousand[31] - Catastrophe reinsurance accounted for 56.5% of the Property segment's gross premiums written in 2021, compared to 62.9% in 2020, indicating a shift towards other property classes[34] - Professional liability premiums in the Casualty and Specialty segment increased to $1,283,864 in 2021, representing 33.1% of the segment's total, up from 29.8% in 2020[37] Strategic Initiatives - The company aims to produce superior returns for shareholders through a strategy focused on superior risk selection, customer relationships, and capital management[24] - The company’s strategy includes exploring diversification into new ventures through organic growth, joint ventures, or acquisitions[20] - The company plans to continue expanding its Casualty and Specialty segment operations through organic growth and acquisitions, contingent on favorable market conditions[39] Risk Management - The company is exposed to significant volatility in financial results due to the nature of its business, particularly from catastrophic events, which primarily impact the Property segment[22] - The company emphasizes a culture of enterprise risk management (ERM) to identify and manage risks effectively across the organization[77] - The company actively monitors and adjusts its risk management models to account for the increasing risks associated with climate change[85] - The company defines assumed risk as activities where it deliberately takes risk against its capital base, with underwriting risk being the most material[81] Investment Strategy - The company emphasizes capital preservation and liquidity in its investment portfolio, which is primarily composed of highly-rated fixed income securities[93] - The company’s investment strategy incorporates environmental, social, and governance factors to enhance the sustainability of its portfolio[87] - The company utilizes a proprietary pricing and exposure management system, REMS©, to assess risk and return for reinsurance contracts[69] Operational Efficiency - The company reported a combined ratio below 100%, indicating profitable underwriting prior to investment income considerations[193] - The net claims and claim expense ratio was expressed as a percentage of net earned premiums, reflecting the efficiency of claims management[194] - The company established additional case reserves to account for specific contracts, reflecting management's proactive approach to claims[193] Joint Ventures and Collaborations - DaVinci, a joint venture, had a noncontrolling economic ownership of 28.7% by the company as of December 31, 2021, up from 21.4% in 2020[49] - Top Layer Re, a joint venture, is backed by $3.9 billion of stop loss reinsurance coverage from State Farm, enhancing the company's capacity in high excess non-U.S. property catastrophe reinsurance[50] - The company actively manages joint ventures and managed funds to enhance client relationships and generate fee income, leveraging its underwriting capabilities[48] Regulatory Compliance - RenaissanceRe is subject to considerable regulation and supervision by state insurance regulators in the U.S., including solvency and investment regulations[138] - The Bermuda regulatory regime has achieved Solvency II equivalence for its commercial (re)insurers, recognized by the European Parliament[115] - The company must file an annual enterprise risk report identifying material risks within the holding company system that could pose enterprise risk[139] Employee and Corporate Governance - The Compensation and Corporate Governance Committee oversees employee compensation practices and DEI initiatives, ensuring alignment with company goals[100] - The company has focused on employee safety during the COVID-19 pandemic, implementing remote work policies and providing personal protective equipment[104] - The company employed 649 people worldwide as of February 2, 2022, an increase from 604 in 2021 and 566 in 2020[101]