RenaissanceRe Holdings Ltd. Q3 FY2024 earnings call

• Kevin O'Donnell reported strong performance with operating income over $540 million, operating return on average common equity 22% for the quarter, and $1.8 billion YTD with 26% operating return on equity. Mentioned Validus acquisition's contribution and increased share repurchase authorization to $750 million. • Bob Qutub discussed financial results with net income $1.2 billion, annualized return on average common equity 47%, operating income $540 million, annualized operating return 22%. Talked about capital management, repurchasing $215 million of shares, and tax implications including Bermuda's 15% corporate income tax starting 2025. • David Marra spoke about preparation for January 1 renewals, Property segment catastrophes including Helene and Milton, and Casualty/Specialty portfolio management, emphasizing proactive client approach and portfolio diversification.

Property Segment: Property Catastrophe had catastrophe gross premiums written $344 million, up 114% or 65% without reinstatement premiums; net premiums written $262 million, up 175% or 114% without reinstatement premiums, adjusted combined ratio 40%. Other Property had gross premiums written up 28%, net premiums written up 26%, net premiums earned $403 million, adjusted combined ratio 84%. Casualty and Specialty: Net premiums written up 45% and 50% respectively, net earned premiums $1.6 billion, up 60%, adjusted combined ratio 97.7% this quarter.

• Increased share repurchase authorization from $500 million to $750 million. • Expect Property market to remain attractive. • In Casualty, taking a proactive client-by-client approach. • Investment income expected to remain relatively consistent in 2025 due to positioning and anticipated asset growth.

• Bermuda Government implementing 15% corporate income tax starting Q1 2025. • Market supply and demand dynamics potentially affecting Property Cat pricing with new capacity coming to market. • Casualty loss trend uncertainties and social inflation impacts in lines like general liability.

Q: About 1.1 renewals on the cat side, isn't it an environment where it shakes out to flat or rate declines during renewals?

A: Kevin O'Donnell said they believe rates are fair and adequate, additional demand will help stabilize pricing, and rates will trade at the new level set in early 2024 Q: On Specialty Casualty, why wouldn't you have started booking higher this year and is that reflected in reserves?

A: Kevin O'Donnell said it's about forward-looking trend change, and David Marra added it's a cumulative thing with actions taking place over next year Q: Why the 50% increase in share repurchase authorization?

A: Bob Qutub said it's due to scale change, Kevin O'Donnell mentioned Validus integration completed and capital flexibility realized Q: How much equity capital does the combined business need?

A: Kevin O'Donnell said they manage with undeployed capital for flexibility and buffer, but don't disclose excess specifically Q: Extent elevated losses in Europe affect 1.1 renewal?

A: David Marra said it keeps conversation around stability and retentions, price will trade around current levels; Kevin O'Donnell added Milton is Florida event, loss-specific discussions more 6.1 Q: Adequacy of share repurchase authorization?

A: Bob Qutub said they can deploy into business and return capital, authorization increase reflects scale, reviewed quarterly Q: Shift focus on Casualty lines to excess of loss?

A: David Marra said market trades mostly on quota share, important to engage with customers; Kevin O'Donnell added quota share aligns interests and trend is more impaired in excess of loss Q: Color on Tokyo Marine adverse development cover and retrocapacity availability?

A: Kevin O'Donnell said they don't disclose specific transactions, Tokyo is a partner; on retrocapacity, said it's tough to call now but expect slightly less retro in 2025 but available Q: Improvement assumed in Casualty picks and engagement with Casualty seeding?

A: Kevin O'Donnell talked about reserving process, slow recognition of good news, and engagement is normal course, focusing on portfolio selection and pricing for 2025