RenaissanceRe : RRH Financial Condition Report for Year End 2024
RNR
Published on 06/03/2025 at 16:17
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NOTE ON FORWARD-LOOKING STATEMENTS...........................................................................3
INTRODUCTION.....................................................................................................................................5
BUSINESS ................................................................................................................................6
Name of Insurer.......................................................................................................... 6
Regulatory Supervisor............................................................................................... 7
Approved Auditor........................................................................................................ 7
Ownership Details...................................................................................................... 7
PERFORMANCE .....................................................................................................................10
Business Written ........................................................................................................ 10
Investment Performance........................................................................................... 13
Material Income and Expenses ............................................................................... 16
Any Other Material Information................................................................................ 16
GOVERNANCE STRUCTURE .............................................................................................. 18
Board and Senior Executives................................................................................... 18
Fitness and Propriety Requirements....................................................................... 22
Risk Management and Solvency Self-Assessment.............................................. 30
Internal Controls......................................................................................................... 32
Internal Audit............................................................................................................... 32
Actuarial Function ...................................................................................................... 34
Outsourcing................................................................................................................. 34
Other Material Information........................................................................................ 35
RISK PROFILE......................................................................................................................... 36
Material Risks ............................................................................................................. 36
Risk Mitigation ............................................................................................................ 37
Material Risk Concentrations ................................................................................... 37
Investment in Assets in Accordance with the Prudent Person Principles ......... 37
Stress Testing and Sensitivity Analysis................................................................... 37
SOLVENCY VALUATION ...................................................................................................... 39
Valuation of Assets..................................................................................................... 39
Valuation of Technical Provisions ............................................................................ 39
Reinsurance Recoverables ...................................................................................... 40
Valuation of Other Liabilities..................................................................................... 40
Any Other Material Information................................................................................ 41
CAPITAL MANAGEMENT ..................................................................................................... 42
Eligible Capital............................................................................................................ 42
Regulatory Capital Requirements ........................................................................... 46
Approved Internal Capital Model ............................................................................. 47
SUBSEQUENT EVENTS........................................................................................................ 48
DECLARATION ...................................................................................................................................... 50
APPENDICES ......................................................................................................................................... 51
Appendix 1: Simplified Group Structure................................................................................ 51
Appendix 2: Bermuda Operating Subsidiary Directors....................................................... 52
This Financial Condition Report for the year ended December 31, 2024 of RenaissanceRe Holdings Ltd. and its subsidiaries contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (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 the discussion and analysis of our 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 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 report 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, estimates of net negative impact and insured losses from loss events, competition in our industry, industry capital, and government initiatives and regulatory matters affecting the (re)insurance industries.
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;
our exposure to ceding companies and delegated authority counterparties and 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;
our ability to attract and retain key executives and employees;
our ability to successfully implement our business, strategies and initiatives;
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;
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 in the Middle East;
other political, regulatory or industry initiatives adversely impacting us;
the impact of cybersecurity risks, including technology breaches or failure;
our ability to comply with covenants in our debt agreements;
the effect of adverse economic factors, including changes in the prevailing interest rates;
the effects of new or possible future tax actions or reform legislation and regulations in the jurisdictions in which we operate;
our ability to determine any impairments taken on our investments;
our ability to raise capital on acceptable terms;
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 Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, 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.
Unless the context requires otherwise, references to "RenaissanceRe" refers to RenaissanceRe Holdings Ltd. (the parent company) and references to "we," "us," "our," the "Company," "Group" and the "RenaissanceRe Group" refer to RenaissanceRe Holdings Ltd. together with its subsidiaries, which include Renaissance Reinsurance Ltd. ("Renaissance Reinsurance") and RenaissanceRe Specialty
U.S. Ltd. ("RenaissanceRe Specialty U.S."). The Company also underwrites reinsurance on behalf of joint ventures, including DaVinci Reinsurance Ltd. ("DaVinci Reinsurance"), Top Layer Reinsurance Ltd. ("Top Layer"), Vermeer Reinsurance Ltd. ("Vermeer"), Fontana Reinsurance Ltd. ("Fontana Re") and Fontana Reinsurance U.S. Ltd. ("Fontana US"). The financial results of DaVinci Reinsurance and DaVinci's parent company, DaVinciRe Holdings Ltd. ("DaVinci"), Fontana Re, Fontana US and Vermeer are consolidated in the Company's financial statements.
This Financial Condition Report ("FCR") is prepared in accordance with the Bermuda Monetary Authority's ("BMA") Insurance (Public Disclosure) Rules 2015 and Insurance (Group Supervision) Rules 2011. The FCR documents the measures governing the business, performance, governance structure, risk profile, solvency valuation, capital management and subsequent events of RenaissanceRe for the year ended December 31, 2024 and for each of Renaissance Reinsurance, RenaissanceRe Specialty U.S., DaVinci Reinsurance, Top Layer, Fontana Re, Fontana US and Vermeer (collectively, our "Bermuda Operating Subsidiaries"). The report provides information to enable an informed assessment on how the RenaissanceRe Group and Bermuda Operating Subsidiaries' respective business is run in a prudent manner.
The Group uses the standard Bermuda Solvency Capital Requirement ("BSCR") model to assess the Enhanced Capital Requirement ("ECR"). This FCR is based primarily on the BSCR submissions and the audited financial statements prepared on the basis of accounting principles generally accepted in the United States ("U.S. GAAP") of RenaissanceRe and our Bermuda Operating Subsidiaries as at December 31, 2024.
This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 ("Form 10-K"), filed with the Securities and Exchange Commission ("SEC") on February 12, 2025, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 ("Form 10-Q"), filed with the SEC on April 24, 2025, and the Proxy Statement for our 2025 Annual General Meeting of Shareholders (the "Proxy Statement") filed with the SEC on March 20, 2025.
All dollar amounts referred to in this report are in U.S. dollars unless otherwise indicated.
Due to rounding, numbers presented in the tables included in this report may not add up precisely to the totals provided.
RenaissanceRe is a global provider of reinsurance and insurance. We provide property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, we have offices in Bermuda, Australia, Canada, Ireland, Singapore, Switzerland, the U.K., and the U.S.
Renaissance Reinsurance
Renaissance Reinsurance was incorporated in Bermuda in 1993 and is licensed as a Class 4 general business insurer by the BMA. Renaissance Reinsurance is RenaissanceRe's principal reinsurance subsidiary and provides property and casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis.
On October 1, 2024, Renaissance Reinsurance amalgamated with Validus Reinsurance Ltd. ("Validus Re"), with Renaissance Reinsurance being the surviving entity. Refer to "2.4. Any Other Material Information" for additional information.
DaVinci Reinsurance
DaVinci was incorporated in Bermuda in 2001 and is licensed as a Class 4 general business insurer by the BMA. DaVinci was established to provide property catastrophe reinsurance and certain lines of casualty and specialty reinsurance on a global basis. Third-party investors own a majority of the economic interest in DaVinci, which provides them with access to attractive risk while generating a management fee and a performance fee stream of income for us. We control a majority of the outstanding voting rights in DaVinci, DaVinci Reinsurance's holding company, and as a result, consolidate DaVinci in our financial results. Renaissance Underwriting Managers, Ltd. ("RUM"), a wholly owned subsidiary of RenaissanceRe, acts as the exclusive underwriting manager for DaVinci. Through our operating subsidiaries, principally Renaissance Reinsurance, we participate on every risk that DaVinci Reinsurance assumes, ensuring alignment. From time to time, Renaissance Reinsurance or certain other operating subsidiaries write business for both themselves and DaVinci Reinsurance, and then cede a portion to DaVinci Reinsurance.
RenaissanceRe Specialty U.S.
RenaissanceRe Specialty U.S. was incorporated in Bermuda in 2013 and is licensed as a Class 3B general business insurer by the BMA. RenaissanceRe Specialty U.S. provides property and casualty and specialty reinsurance on both a quota share and excess of loss basis. RenaissanceRe Specialty
U.S. has made a submission to the Internal Revenue Service ("IRS") to elect, pursuant to §953(d) of the Internal Revenue Code of 1986 (the "Code"), to operate subject to U.S. federal income tax.
Top Layer
Top Layer was incorporated in Bermuda in 1999 and is licensed as a Class 3A general business insurer by the BMA. Top Layer was established to expand our ability to write high excess non-U.S. property catastrophe reinsurance. Top Layer is owned 50% by State Farm Mutual Automobile Insurance Company ("State Farm") and 50% by Renaissance Reinsurance, although State Farm provides the majority of Top Layer's underwriting capacity through a $3.9 billion stop-loss reinsurance agreement, and therefore State Farm retains most of Top Layer's underwriting results. Since we do not control Top Layer, we do not consolidate it in our financial results. Top Layer is managed by RUM in return for a management fee. We maintain a significant investment in Top Layer.
Vermeer
Vermeer was incorporated in Bermuda in 2018 and is licensed as a Class 3B general business insurer by the BMA. Vermeer expands our ability to provide capacity focused on risk remote layers in the U.S. property catastrophe market. We maintain majority voting control of Vermeer, and as a result
consolidate it in our financial results. Stichting Pensioenfonds Zorg en Welzijn ("PFZW"), a pension fund represented by PGGM Vermogensbeheer B.V., a Dutch pension fund manager, retains 100% of Vermeer's economic benefits. Vermeer is managed by RUM in return for a management fee. We separately participate in the risks written by Vermeer through our wholly-owned balance sheets.
Fontana Re and Fontana US
Fontana Holdings L.P. and its subsidiaries (collectively, "Fontana") are a managed joint venture formed in Bermuda in 2022. Fontana Re and Fontana US are licensed as Class 3A general business insurers by the BMA. Fontana was established to assume casualty and specialty risks, including long-tail lines. Fontana US has made a submission to the IRS to elect, pursuant to §953(d) of the Code, to operate subject to U.S. federal income tax. Third-party investors own a majority of the economic interest in Fontana, which provides them with access to attractive casualty and specialty risk while generating a management fee and a performance fee stream of income for us. Fontana also allows us to increase casualty and specialty capacity for our customers. We control a majority of the outstanding voting rights in Fontana, and as a result, consolidate it in our financial results. Fontana assumes a whole account quota share of our global casualty and specialty book of business, including the credit portfolio, ensuring alignment. Fontana comprises a group of reinsurance operating companies and their holding companies, in which we maintain a significant economic investment.
The BMA is RenaissanceRe's Group Supervisor and Insurance Supervisor. Bermuda Monetary Authority
BMA House
43 Victoria Street Hamilton HM12 Bermuda
The Bermuda Insurance Act 1978, as amended, and related regulations (collectively, the "Insurance Act"), requires the appointment of an independent auditor, which must be approved by the BMA. PricewaterhouseCoopers Ltd. is RenaissanceRe's approved auditor for the statutory and U.S. GAAP financial statements.
PricewaterhouseCoopers Ltd. Washington House
4thFloor
16 Church Street Hamilton HM11 Bermuda
Group Structure
A simplified group organizational chart is set out in Appendix 1. The chart depicts the position of the Bermuda Operating Subsidiaries in the RenaissanceRe Group.
Security Ownership of Certain Beneficial Owners
The following table sets forth information with respect to the beneficial ownership of RenaissanceRe's common shares for each person known by us to own beneficially 5% or more of our outstanding common shares:
Name and Address of Beneficial Owner
Number of Common Shares
Percentage of Class (1)
The Vanguard Group (2)
100 Vanguard Blvd.
Malvern, PA 19355
5,565,691
11.4 %
BlackRock, Inc. (3)
55 East 52nd Street
New York, NY 10055
4,775,532
9.7 %
Capital World Investors (4)
33 South Hope Street, 55th Floor
Los Angeles, CA 90071
2,649,127
5.4 %
T. Rowe Price Associates, Inc. (5)
1307 Point Street
Baltimore, MD 21231
2,496,035
5.1 %
The percentage of class shown is based on the common shares reported as beneficially owned on Schedule 13G or Schedule 13G/A and 49,004,247 common shares outstanding as of March 5, 2025.
According to a Statement on Schedule 13G/A filed on February 13, 2024 by The Vanguard Group ("Vanguard"), Vanguard was the beneficial owner of 5,565,691 common shares as of December 29, 2023 and had the shared power to vote or direct the vote of 27,825 common shares, sole power to dispose of or to direct the disposition of 5,446,022 common shares and shared power to dispose or direct the disposition of 119,669 common shares. On May 11, 2018, we granted Vanguard a limited waiver from the restrictions on the acquisition of share ownership set forth in our Bye-laws, up to a maximum amount of shares representing 15% of our shares outstanding. Vanguard has agreed that, in accordance with our Bye-laws, the voting rights attributable to shares owned or controlled by Vanguard will not exceed 9.9% of the voting rights attached to all of our issued and outstanding capital shares.
According to a Statement on Schedule 13G/A filed on February 9, 2024 by BlackRock, BlackRock was the beneficial owner of 4,775,532 common shares as of December 31, 2023 and had the sole power to vote or to direct the voting of 4,597,476 common shares and sole power to dispose of or to direct the disposition of 4,775,532 common shares. On November 16, 2016, we granted BlackRock a limited waiver from the restrictions on the acquisition of share ownership set forth in our Byelaws, up to a maximum amount of shares representing 15% of our shares outstanding. BlackRock has agreed that, in accordance with our Bye-laws, the voting rights attributable to shares owned or controlled by BlackRock will not exceed 9.9% of the voting rights attached to all of our issued and outstanding capital shares.
According to a Statement on Schedule 13G filed on November 13, 2024 by Capital World Investors ("CWI"), CWI was the beneficial owner of 2,649,127 common shares as of September 30, 2024 and had the sole power to vote or to direct the voting of 2,649,127 common shares and sole power to dispose of or to direct the disposition of 2,649,127 common shares.
According to a Statement on Schedule 13G filed on May 14, 2025 by T. Rowe Price Associates, Inc. ("T. Rowe"), T. Rowe was the beneficial owner of 2,496,035 common shares as of March 31, 2025 and had the sole power to vote or to direct the voting of 2,398,545 common shares and sole power to dispose of or to direct the disposition of 2,496,035 common shares.
The following table sets forth information with respect to the ownership of the Bermuda Operating Subsidiaries at December 31, 2024:
Entity
Renaissance Reinsurance
Owner Name
RenaissanceRe (1)
(1)
DaVinci Reinsurance
RenaissanceRe
Third Parties
RenaissanceRe Specialty U.S. RenaissanceRe (1)
Top Layer
Vermeer
RenaissanceRe State Farm
RenaissanceRe
PFZW
RenaissanceRe Third Parties RenaissanceRe Third Parties
(1)
(1)
(1)
Fontana Re
(1)
Fontana US
Common Share Ownership Percentage
100.0%
25.4%
74.6%
100.0%
50.0%
50.0%
-% 100.0%
26.5%
73.5%
26.5%
73.5%
RenaissanceRe is the ultimate owner. Shares are directly held by other entities within the RenaissanceRe Group.
Our business consists of the following reportable segments: (1) Property, which is comprised of catastrophe and other property (re)insurance; and (2) Casualty and Specialty, which is comprised of general casualty, professional liability, credit and other specialty (re)insurance. The underwriting results of our consolidated operating subsidiaries and underwriting platforms are included in our Property and Casualty and Specialty segment results as appropriate.
The following table shows gross premiums written allocated to each of our segments:
Year ended December 31,
2024
2023
(in thousands)
Property
$ 4,823,731
$ 3,562,414
Casualty and Specialty
6,909,335
5,299,952
Total gross premiums written $ 11,733,066 $ 8,862,366
Property Segment
In 2024, our Property segment gross premiums written increased by $1.3 billion, or 35.4%, to $4.8 billion, compared to $3.6 billion in 2023. Gross premiums written in the catastrophe class of business were $3.0 billion in 2024, an increase of $850.6 million, or 39.6%, compared to 2023. This increase was principally driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, during 2024.
Gross premiums written in the other property class of business were $1.8 billion in 2024, an increase of
$410.8 million, or 29.0%, compared to 2023. The increase in gross premiums written in the other property class of business was principally due to the renewal of business acquired in the Validus Acquisition and organic growth in both our catastrophe and non-catastrophe exposed business.
Our Property segment generated underwriting income of $1.6 billion in 2024, compared to $1.4 billion in 2023, an increase in underwriting income of $208.4 million. In 2024, our Property segment generated a net claims and claim expense ratio of 29.7%, an underwriting expense ratio of 27.5% and a combined ratio of 57.2%, compared to 25.9%, 27.5% and 53.4%, respectively, in 2023.
Our Property segment includes our catastrophe class of business, principally comprised of excess of loss reinsurance and excess of loss retrocessional reinsurance, which insures insurance and reinsurance companies against natural and man-made catastrophes. It also includes our other property class of business, primarily comprised of proportional reinsurance, property per risk, property (re)insurance, binding facilities and regional U.S. multi-line reinsurance, which have exposure to natural and man-made catastrophes.
We write catastrophe reinsurance and insurance coverage protecting against natural and man-made catastrophes, such as earthquakes, hurricanes, typhoons and tsunamis, winter storms, freezes, floods, fires, windstorms, tornadoes, explosions and acts of terrorism. We offer this coverage to insurance companies and other reinsurers primarily on an excess of loss basis. This means we begin paying when our customers' claims from a catastrophe exceed a certain retained amount. We also offer proportional coverages and other structures on a catastrophe-exposed basis.
Our excess of loss property contracts generally cover natural perils, and our predominant exposure under such coverage is to property damage. However, other risks, including business interruption and other non-property losses, may also be covered under our property reinsurance contracts when arising from a covered peril.
We offer our coverages on a worldwide basis. Because of the wide range of possible catastrophic events to which we are exposed, including the size of such events and the potential for multiple events to occur in the same time period, our property business is volatile and our financial condition and results of operations reflect this volatility. To moderate the volatility of our risk portfolio, we may increase or decrease our presence in the property business based on market conditions and our assessment of risk-adjusted pricing adequacy. We frequently purchase reinsurance or other protection for our own
Disclaimer
RenaissanceRe Holdings Ltd. published this content on June 03, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 03, 2025 at 20:16 UTC.