SEGMENT REPORTING

The Company has the following reportable segments: (1) Catastrophe Reinsurance, which includes catastrophe reinsurance and certain property catastrophe joint ventures managed by the Company’s ventures unit; (2) Specialty Reinsurance, which includes specialty reinsurance and certain specialty joint ventures managed by the Company’s ventures unit; and (3) Lloyd’s, which includes reinsurance and insurance business written through Syndicate 1458. RenaissanceRe CCL, an indirect wholly owned subsidiary of RenaissanceRe, is the sole corporate member of Syndicate 1458.

The underwriting results of Platinum are included in the Company’s Catastrophe Reinsurance and Specialty Reinsurance segments from March 2, 2015.

The financial results of the Company’s strategic investments, former Insurance segment and redeemable noncontrolling interests are included in the Other category of the Company’s segment results. Also included in the Other category of the Company’s segment results are the Company’s investments in other ventures, investments unit, corporate expenses, capital servicing costs and certain expenses related to the acquisition of Platinum.

The Company does not manage its assets by segment; accordingly, net investment income and total assets are not allocated to the segments.

Potential Change to Segments

The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable segments. As a result of the evolution of the Company following its acquisition of Platinum, the integration of Platinum’s activities within the Company, its increased focus on casualty and specialty lines of business, its current management structure including recent management changes, and its current underwriting platforms, it is likely that the Company will change its reportable segments to “Property” and “Casualty and Specialty” in the future. The expected new segment presentation is based on extensive work performed during 2016, some of which is still ongoing, to recast the Company’s current and prior periods within its financial systems to conform to this new presentation. The Company expects to complete this work in the fourth quarter of 2016 and present its full year results for 2016 based on the new segments. However, the timing of the expected segment change will depend on the satisfactory completion of this work, including transactional and financial systems internal controls testing. All prior periods presented will be reclassified to conform to this new presentation.

A summary of the significant components of the Company’s revenues and expenses is as follows:




Three months ended September 30, 2016	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	67,394		$	270,876		$	91,954		$	—		$	430,224
Net premiums written	$	37,526		$	177,331		$	69,365		$	—		$	284,222
Net premiums earned	$	121,062		$	150,766		$	74,693		$	—		$	346,521
Net claims and claim expenses incurred	927			82,113			29,337			198			112,575
Acquisition expenses	7,603			52,019			20,958			—			80,580
Operational expenses	16,355			15,360			8,760			18			40,493
Underwriting income (loss)	$	96,177		$	1,274		$	15,638		$	(216	)	112,873
Net investment income										51,423			51,423
Net foreign exchange losses										(5,986		)	(5,986		)
Equity in losses of other ventures										(11,630		)	(11,630		)
Other income										2,268			2,268
Net realized and unrealized gains on investments										59,870			59,870
Corporate expenses										(11,537		)	(11,537		)
Interest expense										(10,536		)	(10,536		)
Income before taxes and redeemable noncontrolling interests													186,745
Income tax benefit										1,316			1,316
Net income attributable to redeemable noncontrolling interests										(35,641		)	(35,641		)
Dividends on preference shares										(5,595		)	(5,595		)
Net income available to RenaissanceRe common shareholders													$	146,825

Net claims and claim expenses incurred – current accident year	$	18,267		$	102,025		$	38,068		$	—		$	158,360
Net claims and claim expenses incurred – prior accident years	(17,340		)	(19,912		)	(8,731		)	198			(45,785		)
Net claims and claim expenses incurred – total	$	927		$	82,113		$	29,337		$	198		$	112,575

Net claims and claim expense ratio – current accident year	15.1		%	67.7		%	51.0		%				45.7		%
Net claims and claim expense ratio – prior accident years	(14.3		)%	(13.2		)%	(11.7		)%				(13.2		)%
Net claims and claim expense ratio – calendar year	0.8		%	54.5		%	39.3		%				32.5		%
Underwriting expense ratio	19.8		%	44.7		%	39.8		%				34.9		%
Combined ratio	20.6		%	99.2		%	79.1		%				67.4		%




Nine months ended September 30, 2016	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	825,271		$	840,598		$	385,616		$	—		$	2,051,485
Net premiums written	$	481,956		$	569,842		$	264,015		$	—		$	1,315,813
Net premiums earned	$	399,663		$	443,252		$	208,614		$	—		$	1,051,529
Net claims and claim expenses incurred	64,878			241,666			100,185			201			406,930
Acquisition expenses	33,410			127,871			53,896			—			215,177
Operational expenses	55,308			57,092			35,302			99			147,801
Underwriting income (loss)	$	246,067		$	16,623		$	19,231		$	(300	)	281,621
Net investment income										134,410			134,410
Net foreign exchange losses										(8,368		)	(8,368		)
Equity in losses of other ventures										(3,997		)	(3,997		)
Other income										9,001			9,001
Net realized and unrealized gains on investments										191,295			191,295
Corporate expenses										(25,514		)	(25,514		)
Interest expense										(31,610		)	(31,610		)
Income before taxes and redeemable noncontrolling interests													546,838
Income tax expense										(8,040		)	(8,040		)
Net income attributable to redeemable noncontrolling interests										(110,867		)	(110,867		)
Dividends on preference shares										(16,786		)	(16,786		)
Net income available to RenaissanceRe common shareholders													$	411,145

Net claims and claim expenses incurred – current accident year	$	102,471		$	275,520		$	105,583		$	—		$	483,574
Net claims and claim expenses incurred – prior accident years	(37,593		)	(33,854		)	(5,398		)	201			(76,644		)
Net claims and claim expenses incurred – total	$	64,878		$	241,666		$	100,185		$	201		$	406,930

Net claims and claim expense ratio – current accident year	25.6		%	62.2		%	50.6		%				46.0		%
Net claims and claim expense ratio – prior accident years	(9.4		)%	(7.7		)%	(2.6		)%				(7.3		)%
Net claims and claim expense ratio – calendar year	16.2		%	54.5		%	48.0		%				38.7		%
Underwriting expense ratio	22.2		%	41.7		%	42.8		%				34.5		%
Combined ratio	38.4		%	96.2		%	90.8		%				73.2		%




Three months ended September 30, 2015	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	81,692		$	214,372		$	73,578		$	—		$	369,642
Net premiums written	$	55,182		$	155,987		$	55,651		$	—		$	266,820
Net premiums earned	$	159,641		$	146,213		$	56,534		$	—		$	362,388
Net claims and claim expenses incurred	22,319			41,005			36,425			279			100,028
Acquisition expenses	14,048			50,432			13,654			(8		)	78,126
Operational expenses	23,513			17,542			13,427			36			54,518
Underwriting income (loss)	$	99,761		$	37,234		$	(6,972	)	$	(307	)	129,716
Net investment income										28,338			28,338
Net foreign exchange gains										616			616
Equity in earnings of other ventures										5,730			5,730
Other income										2,306			2,306
Net realized and unrealized losses on investments										(41,138		)	(41,138		)
Corporate expenses										(7,322		)	(7,322		)
Interest expense										(10,542		)	(10,542		)
Income before taxes and noncontrolling interests													107,704
Income tax benefit										4,573			4,573
Net income attributable to noncontrolling interests										(31,153		)	(31,153		)
Dividends on preference shares										(5,595		)	(5,595		)
Net income available to RenaissanceRe common shareholders													$	75,529

Net claims and claim expenses incurred – current accident year	$	36,244		$	96,737		$	37,397		$	—		$	170,378
Net claims and claim expenses incurred – prior accident years	(13,925		)	(55,732		)	(972		)	279			(70,350		)
Net claims and claim expenses incurred – total	$	22,319		$	41,005		$	36,425		$	279		$	100,028

Net claims and claim expense ratio – current accident year	22.7		%	66.2		%	66.1		%				47.0		%
Net claims and claim expense ratio – prior accident years	(8.7		)%	(38.2		)%	(1.7		)%				(19.4		)%
Net claims and claim expense ratio – calendar year	14.0		%	28.0		%	64.4		%				27.6		%
Underwriting expense ratio	23.5		%	46.5		%	47.9		%				36.6		%
Combined ratio	37.5		%	74.5		%	112.3		%				64.2		%




Nine months ended September 30, 2015	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	856,305		$	498,676		$	320,326		$	(90	)	$	1,675,217
Net premiums written	$	548,312		$	399,769		$	231,540		$	(89	)	$	1,179,532
Net premiums earned	$	466,113		$	396,673		$	176,279		$	(89	)	$	1,038,976
Net claims and claim expenses incurred	85,289			166,655			93,951			330			346,225
Acquisition expenses	41,016			99,372			42,557			248			183,193
Operational expenses	65,966			49,579			39,086			181			154,812
Underwriting income (loss)	$	273,842		$	81,067		$	685		$	(848	)	354,746
Net investment income										106,649			106,649
Net foreign exchange losses										(4,254		)	(4,254		)
Equity in earnings of other ventures										17,185			17,185
Other income										5,272			5,272
Net realized and unrealized losses on investments										(26,101		)	(26,101		)
Corporate expenses										(65,723		)	(65,723		)
Interest expense										(25,720		)	(25,720		)
Income before taxes and noncontrolling interests													362,054
Income tax benefit										54,319			54,319
Net income attributable to noncontrolling interests										(82,982		)	(82,982		)
Dividends on preference shares										(16,786		)	(16,786		)
Net income available to RenaissanceRe common shareholders													$	316,605

Net claims and claim expenses incurred – current accident year	$	127,702		$	250,316		$	93,778		$	—		$	471,796
Net claims and claim expenses incurred – prior accident years	(42,413		)	(83,661		)	173			330			(125,571		)
Net claims and claim expenses incurred – total	$	85,289		$	166,655		$	93,951		$	330		$	346,225

Net claims and claim expense ratio – current accident year	27.4		%	63.1		%	53.2		%				45.4		%
Net claims and claim expense ratio – prior accident years	(9.1		)%	(21.1		)%	0.1		%				(12.1		)%
Net claims and claim expense ratio – calendar year	18.3		%	42.0		%	53.3		%				33.3		%
Underwriting expense ratio	22.9		%	37.6		%	46.3		%				32.6		%
Combined ratio	41.2		%	79.6		%	99.6		%				65.9		%

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $0.1 million for the nine months ended September 30, 2015.