RENAISSANCERE HOLDINGS LTD [RNR] Filings

10-Q 1 rnr-20240630.htm 10-Q rnr-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-14428

RENAISSANCERE HOLDINGS LTD.

(Exact Name Of Registrant As Specified In Its Charter)


Bermuda			98-0141974
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)

Renaissance House, 12 Crow Lane, Pembroke, Bermuda HM 19

(Address of Principal Executive Offices) (Zip Code)

(441) 295-4513

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common Shares, Par Value $1.00 per share	RNR	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share	RNR PRF	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a Series G 4.20% Preference Share, Par Value $1.00 per share	RNR PRG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒, Accelerated filer ☐, Non-accelerated filer ☐, Smaller reporting company ☐, Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of Common Shares, par value U.S. $1.00 per share, outstanding at July 22, 2024 was 52,155,667.

RENAISSANCERE HOLDINGS LTD.

TABLE OF CONTENTS


		Page
	GLOSSARY OF DEFINED TERMS	3
	NOTE ON FORWARD-LOOKING STATEMENTS	5

PART I
ITEM 1.	FINANCIAL STATEMENTS	7






ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	57
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	106
ITEM 4.	CONTROLS AND PROCEDURES	106

PART II
ITEM 1.	LEGAL PROCEEDINGS	107
ITEM 1A.	RISK FACTORS	107
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	107
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	108
ITEM 4.	MINE SAFETY DISCLOSURES	108
ITEM 5.	OTHER INFORMATION	108
ITEM 6.	EXHIBITS	109

SIGNATURES		110

GLOSSARY OF DEFINED TERMS

In this Form 10-Q, references to “RenaissanceRe” refer to RenaissanceRe Holdings Ltd. (the parent company) and references to “we,” “us,” “our” and the “Company” refer to RenaissanceRe Holdings Ltd. together with its subsidiaries, unless the context requires otherwise.


“2023 Large Loss Events”			the earthquakes which impacted southern and central Turkey in February 2023, Cyclone Gabrielle which impacted northern New Zealand, the flooding that impacted northern New Zealand in January and February 2023, various wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023, and a series of large, severe weather events that impacted Texas and other southern and central U.S. states in June 2023
“2024 Large Loss Events”			the collapse of the Francis Scott Key Bridge in Baltimore following a collision with a cargo ship in March 2024, a series of severe convective storms impacting the southern and Midwest United States, the Hualien earthquake which impacted Taiwan in April 2024, and certain aggregate loss contracts triggered during 2024.
“AIG”			American International Group, Inc., a Delaware corporation and NYSE-listed company (together with its affiliates and subsidiaries)
“ASC”			Accounting Standards Codification
“AlphaCat Managers”			AlphaCat Managers Ltd.
“A.M. Best”			A.M. Best Company, Inc.
“Baltimore Bridge Collapse”			the collapse of the Francis Scott Key Bridge in Baltimore following a collision with a cargo ship in March 2024
“DaVinci”			DaVinciRe Holdings Ltd. and its subsidiaries
“DaVinci Reinsurance”			DaVinci Reinsurance Ltd.
“ERM”			enterprise risk management
“Exchange Act”			the Securities Exchange Act of 1934, as amended
“FAL”			a deposit that must be submitted to support the underwriting capacity of a member of Lloyd’s
“FASB”			Financial Accounting Standards Board
“FCR”			financial condition report
“Fitch”			Fitch Ratings Ltd.
“Fontana”			Fontana Holdings L.P. and its subsidiaries
“Form 10-K”			Annual Report on Form 10-K
“Form 10-Q”			this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024
“IRS”			United States Internal Revenue Service
“Medici”			RenaissanceRe Medici Fund Ltd.
“Moody’s”			Moody’s Investors Service
“NYSE”			New York Stock Exchange
“OECD”			Organisation for Economic Co-operation and Development
“Q1 2023 Large Loss Events”			the earthquakes in southern and central Turkey in February 2023, Cyclone Gabrielle, the flooding in northern New Zealand in January and February 2023, and various wind and thunderstorm events in both the Southern and Midwest U.S. during March 2023
“Q2 2024 Large Loss Events”			a series of severe convective storms impacting the southern and Midwest United States; the Hualien earthquake which impacted Taiwan in April 2024; and certain aggregate loss contracts triggered during 2024.
“Renaissance Reinsurance”			Renaissance Reinsurance Ltd.
“Renaissance Reinsurance of Europe”			Renaissance Reinsurance of Europe Unlimited Company


“Renaissance Reinsurance U.S.”			Renaissance Reinsurance U.S. Inc.
“RenaissanceRe”			RenaissanceRe Holdings Ltd.
“RenaissanceRe Finance”			RenaissanceRe Finance Inc.
“RenaissanceRe Specialty U.S.”			RenaissanceRe Specialty U.S. Ltd.
“RREAG”			RenaissanceRe Europe AG
“S&P”			Standard and Poor’s Rating Services
“SEC”			U.S. Securities and Exchange Commission
“Securities Act”			Securities Act of 1933, as amended
“Stock Purchase Agreement”			Stock Purchase Agreement, dated May 22, 2023, among RenaissanceRe Holdings Ltd. and AIG, as amended
“Syndicate 1458”			RenaissanceRe Syndicate 1458
“Top Layer”			Top Layer Reinsurance Ltd.
“Tower Hill Companies”			collectively, our investments in a group of Tower Hill affiliated companies including Bluegrass Insurance Management, LLC, Tower Hill Claims Service, LLC, Tower Hill Holdings, Inc., Tower Hill Insurance Group, LLC, Tower Hill Insurance Managers, LLC, Tower Hill Re Holdings, Inc., Tower Hill Risk Management LLC and Tomoka Re Holdings, Inc.
“U.K.”			United Kingdom
“U.S.”			United States of America
“Upsilon Diversified”			RenaissanceRe Upsilon Diversified Fund, a segregated account of Upsilon Fund
“Upsilon Fund”			RenaissanceRe Upsilon Fund Ltd.
“Upsilon RFO”			Upsilon RFO Re Ltd.
“Validus”			Validus Holdings, Validus Specialty, and their respective subsidiaries that were acquired in the Validus Acquisition (including Validus Re and Validus Holdings (UK) Ltd), collectively
“Validus Acquisition”			The acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated in the Stock Purchase Agreement.
“Validus Business”			the collective business of Validus
“Validus Holdings”			Validus Holdings, Ltd.
“Validus Re”			Validus Reinsurance, Ltd.
“Validus Specialty”			Validus Specialty, LLC
“Validus Switzerland”			Validus Reinsurance (Switzerland) Ltd
“Vermeer”			Vermeer Reinsurance Ltd.

NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of RenaissanceRe Holdings Ltd. contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us. In particular, statements using words such as “may,” “should,” “estimate,” “expect,” “anticipate,” “intend,” “believe,” “predict,” “potential,” or words of similar import generally involve forward-looking statements. For example, we may include certain forward-looking statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” with regard to trends in results, prices, volumes, operations, investment results, margins, combined ratios, fees, reserves, market conditions, risk management and exchange rates; the impact of the Validus Acquisition on our business; the consequences of our strategic decisions; the performance of our underwriting portfolio, Capital Partners unit, and investment portfolio; and the impact of general economic conditions such as changes in inflation and interest rates on our results of operations. This Form 10-Q also contains forward-looking statements with respect to our business and industry, such as those relating to our strategy and management objectives, plans and expectations regarding our response and ability to adapt to changing economic conditions, market standing and product volumes, competition and new entrants in our industry, industry capital, insured losses from loss events, government initiatives and regulatory matters affecting the (re)insurance industries, and our integration of, and realization of benefits from, the Validus Acquisition.

The inclusion of forward-looking statements in this report should not be considered as a representation by us or any other person that our current objectives or plans will be achieved. Numerous factors could cause our actual results to differ materially from those addressed by the forward-looking statements, including the following:

•our exposure to natural and non-natural catastrophic events and circumstances and the variance they may cause in our financial results;

•the effect of climate change on our business, including the trend towards increasingly frequent and severe climate events;

•the effectiveness of our claims and claim expense reserving process;

•the effect of emerging claims and coverage issues;

•the performance of our investment portfolio and financial market volatility;

•the effects of inflation;

•the ability of our ceding companies and delegated authority counterparties to accurately assess the risks they underwrite;

•our ability to maintain our financial strength ratings;

•our reliance on a small number of brokers;

•the highly competitive nature of our industry;

•the historically cyclical nature of the (re)insurance industries;

•collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms or at all;

•our ability to attract and retain key executives and employees;

•our ability to successfully implement our business, strategies and initiatives;

•difficulties in integrating the Validus Business;

•our exposure to credit loss from counterparties;

•our need to make many estimates and judgments in the preparation of our financial statements;

•our exposure to risks associated with our management of capital on behalf of investors in joint ventures or other entities we manage;

•changes to the accounting rules and regulatory systems applicable to our business, including changes in Bermuda and U.S. laws or regulations;

•the effect of current or future macroeconomic or geopolitical events or trends, including the ongoing conflicts between Russia and Ukraine, and Israel and Hamas;

•other political, regulatory or industry initiatives adversely impacting us;

•our ability to comply with covenants in our debt agreements;

•the effect of adverse economic factors, including changes in the prevailing interest rates;

•the impact of cybersecurity risks, including technology breaches or failure;

•a contention by the IRS that any of our Bermuda subsidiaries are subject to taxation in the U.S.;

•the effects of new or possible future tax reform legislation and regulations in the jurisdictions in which we operate, including recent changes in Bermuda tax law;

•our ability to determine any impairments taken on our investments;

•our ability to raise capital on acceptable terms, including through debt instruments, the capital markets, and third-party investments in our joint ventures and managed fund partners;

•our ability to comply with applicable sanctions and foreign corrupt practices laws; and

•our dependence on capital distributions from our operating subsidiaries.

As a consequence, our future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of us. The factors listed above, which are discussed in more detail in our filings with the SEC, including our Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024, and Item 1A of this Form 10-Q, should not be construed as exhaustive. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update forward-looking statements to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


			Page
Consolidated Balance Sheets at June 30, 2024 (unaudited) and December 31, 2023			8
Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023			9
Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023			10
Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30, 2024 and 2023			11
Consolidated Statements of Cash Flows for the three and six months ended June 30, 2024 and 2023			12
Notes to the Consolidated Financial Statements			13
Note 1. Organization			13
Note 2. Significant Accounting Policies			13
Note 3. Investments			14
Note 4. Fair Value Measurements			16
Note 5. Reinsurance			27
Note 6. Reserve for Claims and Claim Expenses			29
Note 7. Debt and Credit Facilities			33
Note 8. Noncontrolling Interests			34
Note 9. Variable Interest Entities			38
Note 10. Shareholders’ Equity			43
Note 11. Earnings per Share			44
Note 12. Segment Reporting			45
Note 13. Derivative Instruments			48
Note 14. Commitments and Contingencies and Other Items			55

Note 15. Subsequent Events			56

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States Dollars, except share and per share amounts)


	June 30, 2024		December 31, 2023
Assets	(Unaudited)		(Audited)
Fixed maturity investments trading, at fair value – amortized cost $22,327,625 at June 30, 2024 (December 31, 2023 – $20,872,450)	$	22,092,071	$	20,877,108

Short term investments, at fair value – amortized cost $4,361,704 at June 30, 2024 (December 31, 2023 – $4,603,340)	4,361,052		4,604,079
Equity investments, at fair value	114,405		106,766
Other investments, at fair value	3,809,421		3,515,566
Investments in other ventures, under equity method	151,608		112,624
Total investments	30,528,557		29,216,143
Cash and cash equivalents	1,627,147		1,877,518
Premiums receivable	8,792,401		7,280,682
Prepaid reinsurance premiums	1,433,967		924,777
Reinsurance recoverable	4,854,735		5,344,286
Accrued investment income	225,671		205,713
Deferred acquisition costs and value of business acquired	1,815,617		1,751,437
Deferred tax asset	703,097		685,040
Receivable for investments sold	558,917		622,197
Other assets	290,018		323,960
Goodwill and other intangible assets	737,462		775,352

Total assets	$	51,567,589	$	49,007,105
Liabilities, Noncontrolling Interests and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses	$	20,740,928	$	20,486,869
Unearned premiums	7,696,980		6,136,135
Debt	1,960,167		1,958,655
Reinsurance balances payable	3,387,484		3,186,174
Payable for investments purchased	778,369		661,611
Other liabilities	489,458		1,021,872

Total liabilities	35,053,386		33,451,316
Commitments and contingencies
Redeemable noncontrolling interests	6,335,308		6,100,831
Shareholders’ Equity
Preference shares: $1.00 par value – 30,000 shares issued and outstanding at June 30, 2024 (December 31, 2023 – 30,000)	750,000		750,000
Common shares: $1.00 par value – 52,420,586 shares issued and outstanding at June 30, 2024 (December 31, 2023 – 52,693,887)	52,421		52,694
Additional paid-in capital	2,048,921		2,144,459
Accumulated other comprehensive income (loss)	(13,409)		(14,211)
Retained earnings	7,340,962		6,522,016
Total shareholders’ equity attributable to RenaissanceRe	10,178,895		9,454,958


Total liabilities, noncontrolling interests and shareholders’ equity	$	51,567,589	$	49,007,105

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Operations

For the three and six months ended June 30, 2024 and 2023

(in thousands of United States Dollars, except per share amounts) (Unaudited)


	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Revenues
Gross premiums written	$	3,425,495	$	2,651,621	$	7,416,179	$	5,441,882
Net premiums written	$	2,838,511	$	2,195,803	$	6,038,084	$	4,459,506
Decrease (increase) in unearned premiums	(297,196)		(410,541)		(1,052,859)		(993,694)
Net premiums earned	2,541,315		1,785,262		4,985,225		3,465,812
Net investment income	410,845		292,662		801,620		547,040
Net foreign exchange gains (losses)	(8,815)		(13,488)		(44,498)		(27,991)
Equity in earnings (losses) of other ventures	12,590		7,700		26,717		17,230
Other income (loss)	169		3,876		119		(430)
Net realized and unrealized gains (losses) on investments	(127,584)		(222,781)		(341,238)		56,670



Total revenues	2,828,520		1,853,231		5,427,945		4,058,331
Expenses
Net claims and claim expenses incurred	1,309,502		931,211		2,475,625		1,732,411
Acquisition expenses	644,438		422,545		1,275,359		854,802
Operational expenses	108,039		80,491		214,223		157,965
Corporate expenses	35,159		23,371		74,411		36,214
Interest expense	23,609		14,895		46,713		27,029
Total expenses	2,120,747		1,472,513		4,086,331		2,808,421
Income (loss) before taxes	707,773		380,718		1,341,614		1,249,910
Income tax benefit (expense)	20,848		(5,942)		5,476		(34,844)


Net income (loss)	728,621		374,776		1,347,090		1,215,066
Net (income) loss attributable to redeemable noncontrolling interests	(224,731)		(174,907)		(469,558)		(442,291)
Net income (loss) attributable to RenaissanceRe	503,890		199,869		877,532		772,775
Dividends on preference shares	(8,844)		(8,844)		(17,688)		(17,688)
Net income (loss) available (attributable) to RenaissanceRe common shareholders	$	495,046	$	191,025	$	859,844	$	755,087


Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic	$	9.44	$	4.10	$	16.39	$	16.75


Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted	$	9.41	$	4.09	$	16.35	$	16.71

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

For the three and six months ended June 30, 2024 and 2023

(in thousands of United States Dollars) (Unaudited)


	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Comprehensive income (loss)
Net income (loss)	$	728,621	$	374,776	$	1,347,090	$	1,215,066
Change in net unrealized gains (losses) on investments, net of tax	(183)		390		166		1,308
Foreign currency translation adjustments, net of tax	552		398		636		104

Comprehensive income (loss)	728,990		375,564		1,347,892		1,216,478
Net (income) loss attributable to redeemable noncontrolling interests	(224,731)		(174,907)		(469,558)		(442,291)

Comprehensive (income) loss attributable to redeemable noncontrolling interests	(224,731)		(174,907)		(469,558)		(442,291)
Comprehensive income (loss) attributable to RenaissanceRe	$	504,259	$	200,657	$	878,334	$	774,187

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

For the three and six months ended June 30, 2024 and 2023

(in thousands of United States Dollars) (Unaudited)


	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Preference shares
Beginning balance	$	750,000	$	750,000	$	750,000	$	750,000


Ending balance	750,000		750,000		750,000		750,000
Common shares
Beginning balance	52,908		43,932		52,694		43,718
Issuance of shares	—		7,245		—		7,245
Repurchase of shares	(485)		—		(485)		—
Issuance of restricted stock awards	(2)		5		212		219
Ending balance	52,421		51,182		52,421		51,182
Additional paid-in capital
Beginning balance	2,137,343		467,623		2,144,459		475,647
Issuance of shares	—		1,344,326		—		1,344,326
Repurchase of shares	(108,049)		—		(108,049)		—

Change in redeemable noncontrolling interests	660		(676)		(76)		(1,782)
Issuance of restricted stock awards	18,967		13,942		12,587		7,024
Ending balance	2,048,921		1,825,215		2,048,921		1,825,215
Accumulated other comprehensive income (loss)
Beginning balance	(13,778)		(14,838)		(14,211)		(15,462)
Change in net unrealized gains (loss) on investments, net of tax	(183)		390		166		1,308
Foreign currency translation adjustments, net of tax	552		398		636		104

Ending balance	(13,409)		(14,050)		(13,409)		(14,050)
Retained earnings
Beginning balance	6,866,312		4,618,818		6,522,016		4,071,371

Net income (loss)	728,621		374,776		1,347,090		1,215,066
Net (income) loss attributable to redeemable noncontrolling interests	(224,731)		(174,907)		(469,558)		(442,291)

Dividends on common shares	(20,396)		(19,377)		(40,898)		(35,992)
Dividends on preference shares	(8,844)		(8,844)		(17,688)		(17,688)
Ending balance	7,340,962		4,790,466		7,340,962		4,790,466

Total shareholders’ equity	$	10,178,895	$	7,402,813	$	10,178,895	$	7,402,813

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the six months ended June 30, 2024 and 2023

(in thousands of United States Dollars) (Unaudited)


	Six months ended
	June 30, 2024		June 30, 2023
Cash flows provided by (used in) operating activities
Net income (loss)	$	1,347,090	$	1,215,066
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Amortization, accretion and depreciation	25,989		(73,232)
Equity in undistributed (earnings) losses of other ventures	10,023		2,831
Net realized and unrealized (gains) losses on investments	293,806		(109,559)




Change in:
Premiums receivable	(1,511,719)		(1,351,415)
Prepaid reinsurance premiums	(509,190)		(165,765)
Reinsurance recoverable	489,551		21,574
Deferred acquisition costs and value of business acquired	(64,180)		(129,254)
Reserve for claims and claim expenses	254,059		245,555
Unearned premiums	1,560,845		1,158,195
Reinsurance balances payable	201,310		(147,871)
Other	(201,819)		(39,451)
Net cash provided by (used in) operating activities	1,895,765		626,674
Cash flows provided by (used in) investing activities
Proceeds from sales and maturities of fixed maturity investments trading	15,281,927		8,149,227
Purchases of fixed maturity investments trading	(16,531,701)		(9,719,075)


Proceeds from sales of equity investments	29		548,086
Purchases of equity investments	(215)		(1,687)
Proceeds from sales of short term investments	16,020,340		17,410,561
Purchases of short term investments	(15,732,094)		(19,067,333)
Proceeds from sales of other investments	614,583		260,173
Purchases of other investments	(883,740)		(750,539)

Purchases of investments in other ventures	(53,237)		(13,048)
Return of investment from investment in other ventures	500		2,369




Net cash provided by (used in) investing activities	(1,283,608)		(3,181,266)
Cash flows provided by (used in) financing activities
Dividends paid – RenaissanceRe common shares	(40,898)		(35,992)
Dividends paid – preference shares	(17,688)		(17,688)
RenaissanceRe common share issuance, net of expenses	—		1,352,583
RenaissanceRe common share repurchases	(108,534)		—
Issuance of debt, net of expenses	—		741,597
Repayment of Medici Revolving Credit Facility	(75,000)		(30,000)
Drawdown of Medici Revolving Credit Facility	75,000		—



Subscriptions of third-party redeemable noncontrolling interest shares	92,438		405,277
Redemptions of third-party redeemable noncontrolling interest shares	(757,616)		(95,142)
Taxes paid on withholding shares	(21,442)		(18,837)

Net cash provided by (used in) financing activities	(853,740)		2,301,798
Effect of exchange rate changes on foreign currency cash	(8,788)		2,390
Net increase (decrease) in cash and cash equivalents	(250,371)		(250,404)

Cash and cash equivalents, beginning of period	1,877,518		1,194,339
Cash and cash equivalents, end of period	$	1,627,147	$	943,935

See accompanying notes to the consolidated financial statements

RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2024

(unless otherwise noted, amounts in tables expressed in thousands of United States (“U.S.”) dollars,

except shares, per share amounts and percentages) (Unaudited)

NOTE 1. ORGANIZATION

This report on Form 10-Q should be read in conjunction with RenaissanceRe’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“Form 10-K”). RenaissanceRe was formed under the laws of Bermuda on June 7, 1993. Through its wholly owned and majority-owned subsidiaries, joint ventures and managed funds, the Company provides property, casualty and specialty reinsurance and certain insurance solutions to its customers.

These consolidated financial statements include the results of the Company, its subsidiaries, and all variable interest entities in which the Company is considered to be the primary beneficiary.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Company’s significant accounting policies as described in its Form 10-K for the year ended December 31, 2023, except as described below.

BASIS OF PRESENTATION

These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these statements.

Certain comparative information has been reclassified to conform to the current presentation. Because of the seasonality of the Company’s business, the results of operations and cash flows for any interim period will not necessarily be indicative of the results of operations and cash flows for the full fiscal year or subsequent quarters.

USE OF ESTIMATES IN FINANCIAL STATEMENTS

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the reserve for claims and claim expenses; reinsurance recoverable and premiums receivable, including provisions for reinsurance recoverable and premiums receivable to reflect expected credit losses; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; deferred acquisition costs, the value of business acquired (“VOBA”) and the fair value of other assets acquired and liabilities assumed in acquisitions; and the Company’s deferred tax valuation allowance.

NOTE 3. INVESTMENTS

Fixed Maturity Investments Trading

The following table summarizes the fair value of fixed maturity investments trading:



	June 30, 2024		December 31, 2023
U.S. treasuries	$	10,165,179	$	10,060,203
Corporate (1)	7,253,535		6,499,075
Residential mortgage-backed	1,762,405		1,420,362
Asset-backed	1,458,394		1,491,695
Agencies	568,308		489,117
Non-U.S. government	563,512		483,576
Commercial mortgage-backed	320,738		433,080
Total fixed maturity investments trading	$	22,092,071	$	20,877,108

(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.




	June 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	755,556	$	750,101	$	587,720	$	582,519
Due after one through five years	11,319,555		11,251,057		11,439,510		11,468,263
Due after five through ten years	6,286,705		6,216,620		5,182,667		5,188,716
Due after ten years	362,370		332,756		307,392		292,473
Mortgage-backed	2,148,427		2,083,143		1,864,520		1,853,442
Asset-backed	1,455,012		1,458,394		1,490,641		1,491,695
Total	$	22,327,625	$	22,092,071	$	20,872,450	$	20,877,108

Equity Investments

The following table summarizes the fair value of equity investments:



	June 30, 2024		December 31, 2023
Financials	$	113,306	$	106,542
Basic materials	694		—
Industrial, utilities and energy	167		—
Consumer	143		212
Communications and technology	95		12



Total	$	114,405	$	106,766

Pledged Investments

At June 30, 2024, $10.0 billion (December 31, 2023 - $10.5 billion) of cash and investments at fair value were on deposit with, or in trust accounts for the benefit of, various counterparties, including with respect to the Company’s letter of credit facilities. Of this amount, $2.9 billion (December 31, 2023 - $2.9 billion) is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities.

Reverse Repurchase Agreements

At June 30, 2024, the Company held $101.7 million (December 31, 2023 - $159.7 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of short term investments on the Company’s consolidated balance sheets. The required collateral for these loans typically includes high-quality, readily marketable instruments. Upon maturity, the Company receives principal and interest income.

Net Investment Income

The components of net investment income are as follows:



	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Fixed maturity investments trading	$	273,900	$	169,739	$	531,189	$	325,239
Short term investments	48,386		50,231		95,177		83,181
Equity investments	589		2,766		1,149		6,165
Other investments
Catastrophe bonds	58,436		49,522		116,685		88,353
Other	20,663		20,820		38,588		45,391
Cash and cash equivalents	15,399		4,585		30,121		8,849
	417,373		297,663		812,909		557,178
Investment expenses	(6,528)		(5,001)		(11,289)		(10,138)
Net investment income	$	410,845	$	292,662	$	801,620	$	547,040

Net Realized and Unrealized Gains (Losses) on Investments

Net realized and unrealized gains (losses) on investments are as follows:



	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023


Net realized gains (losses) on fixed maturity investments trading	$	(65,813)	$	(74,212)	$	(56,017)	$	(178,977)
Net unrealized gains (losses) on fixed maturity investments trading	(24,848)		(139,793)		(236,844)		172,233
Net realized and unrealized gains (losses) on fixed maturity investments trading	(90,661)		(214,005)		(292,861)		(6,744)
Net realized and unrealized gains (losses) on investment-related derivatives (1)	10,374		(65,051)		(47,432)		(52,889)
Net realized gains (losses) on equity investments	15		(18,755)		15		(27,493)
Net unrealized gains (losses) on equity investments	(5,507)		20,627		7,590		59,778
Net realized and unrealized gains (losses) on equity investments	(5,492)		1,872		7,605		32,285
Net realized and unrealized gains (losses) on other investments - catastrophe bonds	(34,107)		38,186		(15,200)		62,312
Net realized and unrealized gains (losses) on other investments - other	(7,698)		16,217		6,650		21,706
Net realized and unrealized gains (losses) on investments	$	(127,584)	$	(222,781)	$	(341,238)	$	56,670

(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures and credit default swaps), equity investments related derivatives (equity futures) and commodity investments related derivatives (commodity futures and commodity options). See “Note 13. Derivative Instruments” for additional information.

NOTE 4. FAIR VALUE MEASUREMENTS

The use of fair value to measure certain assets and liabilities with resulting unrealized gains or losses is pervasive within the Company’s consolidated financial statements. Fair value is defined under accounting guidance currently applicable to the Company as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. The Company recognizes the change in unrealized gains or losses arising from changes in fair value in its consolidated statements of operations.

FASB ASC Topic 820, Fair Value Measurements, prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to valuation techniques that use at least one significant input that is unobservable (Level 3). The three levels of the fair value hierarchy are described below:

•Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access at the measurement date. The fair value is determined by multiplying the quoted price by the quantity held by the Company;

•Fair values determined by Level 2 inputs utilize inputs (other than quoted prices included in Level 1) that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and

•Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement of the asset or liability. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the asset or liability.

In order to determine if a market is active or inactive for a security, the Company considers a number of factors, including, but not limited to, the spread between what a seller is asking for a security and what a buyer is bidding for the same security, the volume of trading activity for the security in question, the price of the security compared to its par value (for fixed maturity investments), and other factors that may be indicative of market activity.

There have been no material changes in the Company’s valuation techniques, nor have there been any transfers between Level 1 and Level 2, or Level 2 and Level 3 during the period represented by these consolidated financial statements.

Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets:



At June 30, 2024	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed maturity investments trading
U.S. treasuries	$	10,165,179	$	10,165,179	$	—	$	—
Corporate (1)	7,253,535		—		7,253,535		—
Residential mortgage-backed	1,762,405		—		1,762,405		—
Asset-backed	1,458,394		—		1,458,394		—
Agencies	568,308		—		568,308		—

Non-U.S. government	563,512		—		563,512		—



Commercial mortgage-backed	320,738		—		320,738		—
Total fixed maturity investments trading	22,092,071		10,165,179		11,926,892		—
Short term investments	4,361,052		164,944		4,196,108		—
Equity investments	114,405		114,405		—		—
Other investments
Catastrophe bonds	1,901,612		—		1,901,612		—
Term loans	96,639		—		—		96,639
Direct private equity investments	45,278		—		—		45,278
	2,043,529		—		1,901,612		141,917
Fund investments (2)	1,765,892		—		—		—



Total other investments	3,809,421		—		1,901,612		141,917
Other assets and (liabilities)
Assumed and ceded (re)insurance contracts (3)	(440)		—		—		(440)

Derivative assets (4)	28,515		14,944		13,571		—
Derivative liabilities (4)	(15,457)		(6,925)		(8,532)		—

Total other assets and (liabilities)	12,618		8,019		5,039		(440)
	$	30,389,567	$	10,452,547	$	18,029,651	$	141,477

(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

(2)Fund investments, which may include private equity funds, private credit funds, and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(3)Included in assumed and ceded (re)insurance contracts at June 30, 2024 was $0.4 million of other assets and $0.8 million of other liabilities.

(4)Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company.



At December 31, 2023	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed maturity investments trading
U.S. treasuries	$	10,060,203	$	10,060,203	$	—	$	—
Corporate (1)	6,499,075		—		6,499,075		—
Asset-backed	1,491,695		—

RENAISSANCERE HOLDINGS LTD [RNR] Filings
RENAISSANCERE HOLDINGS LTD [RNR-PF] Filings
RENAISSANCERE HOLDINGS LTD [RNR-PG] Filings
10-Q	[2024-07-25]
10-Q	[2024-05-01]
10-K	[2024-02-21]
10-Q	[2023-11-02]
10-Q	[2023-07-26]
10-Q	[2023-05-03]
10-K	[2023-02-08]
10-Q	[2022-11-02]
10-Q	[2022-07-26]
10-Q	[2022-05-04]
10-K	[2022-02-04]
10-Q	[2021-10-26]
10-Q	[2021-07-23]
10-Q	[2021-04-29]
10-K	[2021-02-05]
10-Q	[2020-10-28]
10-Q	[2020-07-29]
10-Q	[2020-05-07]
10-K	[2020-02-07]
10-Q	[2019-10-30]
10-Q	[2019-07-25]
10-Q	[2019-05-08]
10-K	[2019-02-07]
10-Q	[2018-10-31]
10-Q	[2018-07-25]
10-Q	[2018-05-02]
10-K	[2018-02-09]
10-Q	[2017-11-02]
10-Q	[2017-07-26]
10-Q	[2017-05-03]
10-K	[2017-02-23]
10-Q	[2016-11-02]
10-Q	[2016-07-27]
10-Q	[2016-04-28]
10-K	[2016-02-19]
10-Q	[2015-11-06]
10-Q	[2015-07-29]
10-Q	[2015-05-06]
10-K	[2015-02-20]
10-Q	[2014-11-06]
10-Q	[2014-07-30]
10-Q	[2014-04-30]
10-K	[2014-02-21]
10-Q	[2013-11-06]
10-Q	[2013-08-01]
10-Q	[2013-05-03]
10-K	[2013-02-22]
10-Q	[2012-11-02]
10-Q	[2012-08-02]
10-Q	[2012-05-03]
10-K	[2012-02-23]

RENAISSANCERE HOLDINGS LTD [RNR] Filings

RENAISSANCERE HOLDINGS LTD [RNR-PF] Filings

RENAISSANCERE HOLDINGS LTD [RNR-PG] Filings