RenRe reported that net claims and claims expenses incurred related to the invasion that began in late February had a $27.1mn negative impact in its Q1 underwriting results, solely in the casualty and specialty segment, although the development was partially offset by redeemable noncontrolling interest of $2.2mn.
But despite the war’s impact, the Bermudian’s casualty and specialty unit improved its CoR 0.7 points to 98.2%.
Moreover, RenRe was hit by weather-related losses that impacted up to seven points of the reinsurer’s CoR in the first quarter of the year.
The company’s property unit showed a 36.8-point in its combined ratio to 70.1% in the first quarter of the year.
Consensus: The reinsurer’s operating earnings per share skyrocketed to $3.50 from $0.09 a year ago but missed the consensus analyst estimate of $4.76.
Top line: RenRe grew Q1 gross written premium by 11% to $2.9bn and net written premium by 18.7% to almost $2.2bn year-on-year.
The growth rates, however, marked a deceleration from last quarter’s growth, when the reinsurer grew GWP 40% and NWP almost 50%.
Expense ratio: The company’s expense ratio deteriorated 1.9 points in the first quarter of 2022 to 29.9%.
Loss ratio: RenRe’s Q1 loss ratio improved 18.5 points to 56.6%.
Investment: The firm’s Q1 net investment income rose 4.9% to $84mn.
Commentary: RenRe president and CEO Kevin O’Donnell said: “We would like to recognize the great human tragedy of the ongoing Russia-Ukraine War and hope for rapid cessation of hostilities and peace in the region.”
“Our balance sheet is strong and all three of our drivers of profit should benefit from improving market conditions: our underwriting from material rate increases across most lines as well as continuing growth in our casualty and specialty segment; our fee income business from the launch of our groundbreaking casualty and specialty joint venture Fontana; and our investment income from rising interest rates,” he added.
