More strong results from Bermuda. This time RenaissanceRe reported better than expected earnings in its 2003 third-quarter results last week.
The Bermuda based reinsurer said third-quarter earnings rose 29 percent on premium growth of more than 50 percent in its individual risk segment.
Earnings increased from $91.3mn for the third quarter of 2002 to $118.1mn for the same period this year. Earnings per share rose to $1.59 a share, compared with $1.26 a share last year, easily beating Wall Street consensus earnings estimates of $1.45 per share.
Third-quarter revenue rose to $315mn from $234.1mn and gross premiums for the third quarter of 2003 were $313.3mn, compared with $282.6mn for the same quarter of 2002.
RenaissanceRe said that it plans to invest between $115mn and $125mn into a new Bermuda-based financial guaranty business, Channel Re.
The earnings announcement was followed the next day by news of senior appointments in Renaissance Re’s specialty reinsurance business.
Robert J Lamendola will become senior vice president of Renaissance Re's surety reinsurance business, while former Kiln underwriter James R Lewis will develop medical malpractice reinsurance business for the company. Both appointments will be based at the company's headquarters in Hamilton, Bermuda.
"We are very pleased to welcome Bob and Jamie to Renaissance and believe that the particular skill sets they bring will contribute significantly to the continued development of our rapidly growing specialty reinsurance business unit, giving our specialty team additional depth and breadth," said James N. Stanard, chairman and CEO of RenaissanceRe. "Both will work in the specialty reinsurance area… and together with the other members of our team will further develop our specialty lines into core parts of our strategic business model. Our continued expansion of our specialty lines is consistent with one of RenRe's established strengths: applying the strong underwriting skills of our people and systems to areas where dislocations are creating opportunities for long-term franchise value," he added.