RenaissanceRe(US:RNR)2022-05-04 21:07Financial Performance - Gross premiums written increased to $2,942,964 thousand in Q1 2022, up from $2,652,442 thousand in Q1 2021, representing an increase of 10.9%[19] - Net premiums earned rose to $1,486,425 thousand in Q1 2022, compared to $1,153,836 thousand in Q1 2021, reflecting a growth of 28.9%[19] - Total revenues for Q1 2022 were $876,416 thousand, slightly up from $861,902 thousand in Q1 2021, indicating a growth of 1.6%[19] - Net income attributable to RenaissanceRe was a loss of $385,569 thousand in Q1 2022, compared to a loss of $283,645 thousand in Q1 2021, representing a decline of 35.9%[19] - Net income for the three months ended March 31, 2022 was a loss of $397,481,000 compared to a loss of $330,495,000 for the same period in 2021, representing a 20.2% increase in losses year-over-year[29] - The company reported a net loss attributable to common shareholders of $394.4 million for the three months ended March 31, 2022, compared to a net loss of $290.9 million for the same period in 2021[173] Investment Performance - Net investment income for Q1 2022 was $83,691 thousand, up from $79,804 thousand in Q1 2021, an increase of 3.7%[19] - The company reported a net realized and unrealized loss on investments of $673,017 thousand in Q1 2022, compared to a loss of $345,563 thousand in Q1 2021, indicating a significant increase in losses[19] - The company reported net realized and unrealized gains on investments of $632,729,000 for the three months ended March 31, 2022, compared to $360,424,000 in the same period of 2021, an increase of 75.5%[29] - The fair value of equity investments trading rose to $873.27 million as of March 31, 2022, compared to $546.02 million on December 31, 2021, reflecting a growth of approximately 59.8%[41] - The fair value of U.S. treasuries was $5.79 billion as of March 31, 2022, a decrease from $6.25 billion on December 31, 2021, representing a decline of approximately 7.4%[54] - The company reported net unrealized losses on fixed maturity investments trading of $464.18 million for the three months ended March 31, 2022, compared to losses of $297.02 million for the same period in 2021[46] Claims and Reserves - The reserve for claims and claim expenses increased to $13,510,304 thousand as of March 31, 2022, from $13,294,630 thousand at the end of 2021, an increase of 1.6%[18] - The total reserve for claims and claim expenses as of March 31, 2022, was $13.5 billion, an increase from $10.9 billion at the end of 2021[107] - The net claims and claim expenses incurred for the three months ended March 31, 2022, were $841.7 million, slightly down from $867.1 million in the prior year[99] - The Company's total claims and claim expense reserves included $6.2 billion for Property and $7.3 billion for Casualty and Specialty segments as of March 31, 2022[105] - The net favorable development of prior accident years net claims and claim expenses was $17.8 million for the three months ended March 31, 2022, compared to $9.0 million in 2021[109] Shareholder Equity and Dividends - Dividends per common share were $0.37 in Q1 2022, slightly up from $0.36 in Q1 2021, reflecting a 2.8% increase[19] - The company paid dividends of $16,241,000 on common shares and $8,940,000 on preference shares during the three months ended March 31, 2022, compared to $17,817,000 and $7,289,000 respectively in the same period of 2021[29] - Total shareholders' equity decreased from $7,078,337,000 in March 31, 2021 to $6,116,960,000 in March 31, 2022, a decline of approximately 13.7%[26] Cash Flow and Capital Management - Cash flows provided by operating activities were $168,229,000 for the three months ended March 31, 2022, down from $206,538,000 in the same period of 2021, a decrease of 18.5%[29] - Net cash used in investing activities was $(403,900,000) for the three months ended March 31, 2022, compared to $(463,131,000) in the same period of 2021, indicating a 12.8% improvement in cash outflows[29] - The company repurchased common shares amounting to $97,259,000 during the three months ended March 31, 2022, compared to $171,645,000 in the same period of 2021, a reduction of 43.2%[29] Debt and Liabilities - The total liabilities increased to $24,767,224 thousand as of March 31, 2022, from $23,781,168 thousand at the end of 2021, an increase of 4.1%[18] - The Company's total debt as of March 31, 2022, was $1.188 billion, a decrease from $1.268 billion as of December 31, 2021[117] - The company's debt obligations were $1.2 billion as of March 31, 2022, with a fair value also at $1.2 billion[86] Derivative Instruments - As of March 31, 2022, the total derivative instruments not designated as hedges amounted to $16.53 billion[180] - The gross amount of derivative liabilities not designated as hedges was $36.67 billion, with a net amount of $31.83 billion after offsetting[180] - The company reported a total loss of $66.35 million from derivative instruments for the three months ended March 31, 2022, compared to a gain of $4.07 million in the same period of 2021[187] - The company had $12.59 billion in foreign currency forward contracts classified as derivative assets not designated as hedges[180] Other Investments and Holdings - The company held $256.6 million in reverse repurchase agreements as of March 31, 2022, a significant increase from $5.1 million on December 31, 2021[43] - The fair value of the Company's investment in the principal-at-risk variable rate notes of Mona Lisa Re was $5.0 million at March 31, 2022[151] - The company has invested $2.4 million in Langhorne Holdings as of March 31, 2022, with expectations of increased investment if in-force life and annuity blocks are written[155][157]