RenaissanceRe Holdings Ltd. Q1 FY2026 earnings call

• Geopolitical risk elevated, but company's business anti-correlated. Operating income strong with underwriting, fee, and investment income contributing. - Underwriting: Strong underwriting income, Property Cat top line flat excluding reinstatement premiums, rates adequate, Casualty and Specialty adjusted combined ratio 99.4%, limited exposure to Middle East war. - Fee income: Total fee income $94 million, performance fees main driver, Capital Partners important for diversified earnings. - Investment: Net investment income robust, adjusted portfolio by reducing gold position, increasing exposure to investment-grade corporate credit, extending duration, and having exposure to private credit.

For the first quarter of 2026, operating income was $591 million, operating return on equity was 22% annualized, and operating earnings per share was $13.75. Tangible book value per share increased by 1.5% to $233.49. Underwriting income was $589 million, driven by excellent current accident year performance and favorable prior year development. Property Cat top line stayed relatively flat excluding reinstatement premiums with rates adequate and above-market share of new business. Casualty and Specialty adjusted combined ratio was 99.4%. Fee income was approximately $94 million, with performance fees the main driver. Retained net investment income was impacted by market movements but net investment income remained robust. Gold position reduced by about half during the quarter.

• Expect Other Property net premiums earned around $350 million and attritional loss ratio in mid-50s in second quarter. - Expect Casualty and Specialty net premiums earned approximately $1.3 billion and adjusted combined ratio in high 90s in second quarter. - Expect management fees around $50 million in second quarter, performance fees around $120 million for the year absent large loss events or favorable development. - Expect retained net investment income to trend slightly up in second quarter.

• Geopolitical risk elevated, market conditions highly volatile and less predictable. - Exposure to war in Middle East, though limited and potential impact monitored.

Q: On midyear renewals and new demand, A: Bound about half of U.S. midyear portfolio, new demand higher than expected.

Q: On losses from Iran war, A: Limited exposure, losses reflected in portfolio, cautious on IBNR release.

Q: On operating expense ratio, A: 4.1% due to one-time items, investing in business, expecting expense ratio to grow to 5 - 5.5%.

Q: On portfolio changes, A: Reduced gold position, shifted to investment-grade credit, extended duration, and has exposure to private credit.

Q: On demand for aggregate covers, A: Prioritize quality of pricing, risk, and buyer, see good aggregates.

Q: On Florida midyear pricing, A: Economics reducing, portfolio well rated, finding new growth opportunities.

Q: On ROE target, A: Not a target, formulaic input for compensation.

Q: On inorganic growth, A: Open to inorganic growth if serves strategy.

Q: On incremental demand at midyear, A: $15 billion for U.S. Cat limit.

Q: On Casualty and Specialty loss ratio, A: Impacted by Iran losses but underlying not showing uptick.

Q: On PMLs, A: Deploying more capacity, exposure to Southeast hurricane risk slightly up