RenaissanceRe Holdings Ltd. Q2 FY2025 earnings call

• Underwriting Strength: Grew U.S. property catastrophe portfolio at midyear renewal, with 80% of Florida premium written at private terms above market rates. Adjusted combined ratio of 73% due to low catastrophe losses and favorable development.
• Investment Approach: Cautious investment approach with a portfolio structured to be accretive. Net reserve position of $19 billion provides investment leverage and flexibility in asset allocation.
• Capital Partners Business: Deployed over $10 billion of partner capital, with fees recaptured from the California wildfires and growing steadily since 2023.
• Midyear Renewals: Successfully grew property catastrophe in the U.S., optimized Casualty and Specialty portfolio, with property cat portfolio being the largest and most profitable on an expected basis.

Underwriting: Reported an adjusted combined ratio of 73%. Gross premiums written were $3.4 billion, net premiums written $2.7 billion. Property segment had an adjusted combined ratio of 26%, while Casualty and Specialty had 99.5%. Investments: Retained net investment income was $286 million. The investment portfolio is structured to be accretive, with a net reserve position of $19 billion providing investment leverage. Capital Partners: Fees were $95 million for the quarter, with fees recaptured from the California wildfires and totaling almost $700 million since 2023.

• Underwriting: Expect adjusted combined ratio in Casualty and Specialty to be in the high 90s, net premiums earned in other property ~$360 million with attritional loss ratio mid-50s.
• Fees: Expect fees to be ~$80 million in Q3, with $50 million management fees and $30 million performance fees.
• Buybacks: Continuing to repurchase shares, looking to deploy and return capital at attractive valuations.

• Catastrophic Events: Impact of hurricanes, wildfires on underwriting results and fee income.
• Market Volatility: Fluctuations in underwriting and fee income, especially in cat-heavy quarters.
• Tax Environment: New Bermuda corporate income tax affecting effective tax rate, making year-over-year comparisons difficult.

Q: On reserve releases in property cat, which year was the bigger driver?

A: Comes from across all accident periods back to 2017, half sticks to them.

Q: Renewals on property cat, thoughts on 2026?

A: Strategy to continue executing, market will trade at adequate levels, little business renews by year-end.

Q: Management fees, what changed?

A: Light cat quarter and favorable development accelerated fee recovery, AlphaCat/OmegaCat not big contributor.

Q: Pricing in property cat, durable?

A: Execution is strong, access to business and risk selection capabilities are sustainable.

Q: Florida tort reform impact?

A: Beneficial for domestic carriers, some rate reductions, still profitable for RenRe.

Q: Commercial auto appetite?

A: Appetite unchanged, not large writer of commercial auto or workers' comp.

Q: Bermuda tax credits?

A: Tax reform commission working, ETA is cash credit, not effective rate relief.

Q: Private transactions in cat pricing?

A: 80% of Florida premium at above market private terms, differentiation from risk selection and access to business.