Bermuda | 98-014-1974 |
(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) |
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• | the frequency and severity of catastrophic and other events we cover; |
• | the effectiveness of our claims and claim expense reserving process; |
• | our ability to maintain our financial strength ratings; |
• | the effect of climate change on our business; |
• | collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that we intended to obtain; |
• | the effects of United States (“U.S.”) business tax reform proposals; |
• | adverse tax developments, including potential changes to the taxation of inter-company or related party transactions, or changes to the tax treatment of our shareholders or investors in our joint ventures or other entities we manage; |
• | the effect of emerging claims and coverage issues; |
• | continued soft reinsurance underwriting market conditions; |
• | our reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of our revenue; |
• | our exposure to credit loss from counterparties in the normal course of business; |
• | the effect of continued challenging economic conditions throughout the world; |
• | a contention by the Internal Revenue Service (the “IRS”) that Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), or any of our other Bermuda subsidiaries, is subject to taxation in the U.S.; |
• | the performance of our investment portfolio; |
• | losses we could face from terrorism, political unrest or war; |
• | the effect of cybersecurity risks, including technology breaches or failure, on our business; |
• | our ability to successfully implement our business strategies and initiatives; |
• | our ability to retain our key senior officers and to attract or retain the executives and employees necessary to manage our business; |
• | our ability to determine the impairments taken on our investments; |
• | the effects of inflation; |
• | the ability of our ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; |
• | the effect of operational risks, including system or human failures; |
• | our ability to effectively manage capital on behalf of investors in joint ventures or other entities we manage; |
• | foreign currency exchange rate fluctuations; |
• | our ability to raise capital if necessary; |
• | our ability to comply with covenants in our debt agreements; |
• | changes to the regulatory systems under which we operate, including as a result of increased global regulation of the insurance and reinsurance industry; |
• | changes in Bermuda laws and regulations and the political environment in Bermuda; |
• | our dependence on the ability of our operating subsidiaries to declare and pay dividends; |
• | the success of any of our strategic investments or acquisitions, including our ability to manage our operations as our product and geographical diversity increases; |
• | aspects of our corporate structure that may discourage third-party takeovers and other transactions; |
• | the cyclical nature of the reinsurance and insurance industries; |
• | adverse legislative developments that reduce the size of the private markets we serve or impede their future growth; |
• | other political, regulatory or industry initiatives adversely impacting us; |
• | risks related to Solvency II; |
• | the effect on our business of the highly competitive nature of our industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry; |
• | consolidation of competitors, customers and insurance and reinsurance brokers; |
• | increasing barriers to free trade and the free flow of capital; |
• | international restrictions on the writing of reinsurance by foreign companies and government intervention in the natural catastrophe market; |
• | the effect of Organisation for Economic Co-operation and Development (the “OECD”) or European Union (“EU”) measures to increase our taxes and reporting requirements; |
• | the effect of the vote by the U.K. to leave the EU; |
• | changes in regulatory regimes and accounting rules that may impact financial results irrespective of business operations; and |
• | our need to make many estimates and judgments in the preparation of our financial statements. |
September 30, 2017 | December 31, 2016 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Fixed maturity investments trading, at fair value – amortized cost $7,061,487 at September 30, 2017 (December 31, 2016 – $6,920,690) | $ | 7,092,969 | $ | 6,891,244 | |||
Short term investments, at fair value | 1,497,262 | 1,368,379 | |||||
Equity investments trading, at fair value | 402,035 | 383,313 | |||||
Other investments, at fair value | 548,492 | 549,805 | |||||
Investments in other ventures, under equity method | 101,420 | 124,227 | |||||
Total investments | 9,642,178 | 9,316,968 | |||||
Cash and cash equivalents | 581,576 | 421,157 | |||||
Premiums receivable | 1,521,266 | 987,323 | |||||
Prepaid reinsurance premiums | 635,756 | 441,260 | |||||
Reinsurance recoverable | 1,588,304 | 279,564 | |||||
Accrued investment income | 38,366 | 38,076 | |||||
Deferred acquisition costs | 434,914 | 335,325 | |||||
Receivable for investments sold | 193,758 | 105,841 | |||||
Other assets | 164,019 | 175,382 | |||||
Goodwill and other intangible assets | 244,787 | 251,186 | |||||
Total assets | $ | 15,044,924 | $ | 12,352,082 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses | $ | 5,192,313 | $ | 2,848,294 | |||
Unearned premiums | 1,713,069 | 1,231,573 | |||||
Debt | 989,245 | 948,663 | |||||
Reinsurance balances payable | 1,034,454 | 673,983 | |||||
Payable for investments purchased | 377,543 | 305,714 | |||||
Other liabilities | 301,559 | 301,684 | |||||
Total liabilities | 9,608,183 | 6,309,911 | |||||
Commitments and Contingencies | |||||||
Redeemable noncontrolling interests | 1,033,729 | 1,175,594 | |||||
Shareholders’ Equity | |||||||
Preference shares: $1.00 par value – 16,000,000 shares issued and outstanding at September 30, 2017 (December 31, 2016 – 16,000,000) | 400,000 | 400,000 | |||||
Common shares: $1.00 par value – 40,029,116 shares issued and outstanding at September 30, 2017 (December 31, 2016 – 41,187,413) | 40,029 | 41,187 | |||||
Additional paid-in capital | 32,852 | 216,558 | |||||
Accumulated other comprehensive income | 161 | 1,133 | |||||
Retained earnings | 3,929,970 | 4,207,699 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 4,403,012 | 4,866,577 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 15,044,924 | $ | 12,352,082 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 640,269 | $ | 430,224 | $ | 2,389,774 | $ | 2,051,485 | |||||||
Net premiums written | $ | 483,221 | $ | 284,222 | $ | 1,583,102 | $ | 1,315,813 | |||||||
Decrease (increase) in unearned premiums | 64,571 | 62,299 | (287,000 | ) | (264,284 | ) | |||||||||
Net premiums earned | 547,792 | 346,521 | 1,296,102 | 1,051,529 | |||||||||||
Net investment income | 40,257 | 51,423 | 148,745 | 134,410 | |||||||||||
Net foreign exchange (losses) gains | (156 | ) | (5,986 | ) | 11,118 | (8,368 | ) | ||||||||
Equity in earnings (losses) of other ventures | 1,794 | (11,630 | ) | 5,830 | (3,997 | ) | |||||||||
Other income | 2,996 | 2,268 | 7,053 | 9,001 | |||||||||||
Net realized and unrealized gains on investments | 42,052 | 59,870 | 143,538 | 191,295 | |||||||||||
Total revenues | 634,735 | 442,466 | 1,612,386 | 1,373,870 | |||||||||||
Expenses | |||||||||||||||
Net claims and claim expenses incurred | 1,221,696 | 112,575 | 1,557,364 | 406,930 | |||||||||||
Acquisition expenses | 76,761 | 80,580 | 248,294 | 215,177 | |||||||||||
Operational expenses | 42,537 | 40,493 | 131,586 | 147,801 | |||||||||||
Corporate expenses | 4,413 | 11,537 | 14,335 | 25,514 | |||||||||||
Interest expense | 11,799 | 10,536 | 32,416 | 31,610 | |||||||||||
Total expenses | 1,357,206 | 255,721 | 1,983,995 | 827,032 | |||||||||||
(Loss) income before taxes | (722,471 | ) | 186,745 | (371,609 | ) | 546,838 | |||||||||
Income tax benefit (expense) | 18,977 | 1,316 | 14,739 | (8,040 | ) | ||||||||||
Net (loss) income | (703,494 | ) | 188,061 | (356,870 | ) | 538,798 | |||||||||
Net loss (income) attributable to redeemable noncontrolling interests | 204,277 | (35,641 | ) | 132,338 | (110,867 | ) | |||||||||
Net (loss) income attributable to RenaissanceRe | (499,217 | ) | 152,420 | (224,532 | ) | 427,931 | |||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | (16,786 | ) | (16,786 | ) | |||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (504,812 | ) | $ | 146,825 | $ | (241,318 | ) | $ | 411,145 | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – basic | $ | (12.75 | ) | $ | 3.58 | $ | (6.04 | ) | $ | 9.77 | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – diluted | $ | (12.75 | ) | $ | 3.56 | $ | (6.04 | ) | $ | 9.71 | |||||
Dividends per common share | $ | 0.32 | $ | 0.31 | $ | 0.96 | $ | 0.93 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||
Comprehensive (loss) income | |||||||||||||||
Net (loss) income | $ | (703,494 | ) | $ | 188,061 | $ | (356,870 | ) | $ | 538,798 | |||||
Change in net unrealized gains on investments | 300 | 284 | (972 | ) | 513 | ||||||||||
Comprehensive (loss) income | (703,194 | ) | 188,345 | (357,842 | ) | 539,311 | |||||||||
Net loss (income) attributable to redeemable noncontrolling interests | 204,277 | (35,641 | ) | 132,338 | (110,867 | ) | |||||||||
Comprehensive loss (income) attributable to redeemable noncontrolling interests | 204,277 | (35,641 | ) | 132,338 | (110,867 | ) | |||||||||
Comprehensive (loss) income attributable to RenaissanceRe | $ | (498,917 | ) | $ | 152,704 | $ | (225,504 | ) | $ | 428,444 |
Nine months ended | |||||||
September 30, 2017 | September 30, 2016 | ||||||
Preference shares | |||||||
Balance – January 1 | $ | 400,000 | $ | 400,000 | |||
Balance – September 30 | 400,000 | 400,000 | |||||
Common shares | |||||||
Balance – January 1 | 41,187 | 43,701 | |||||
Repurchase of shares | (1,322 | ) | (2,741 | ) | |||
Exercise of options and issuance of restricted stock awards | 164 | 196 | |||||
Balance – September 30 | 40,029 | 41,156 | |||||
Additional paid-in capital | |||||||
Balance – January 1 | 216,558 | 507,674 | |||||
Repurchase of shares | (187,269 | ) | (306,693 | ) | |||
Change in redeemable noncontrolling interests | (307 | ) | (1,040 | ) | |||
Exercise of options and issuance of restricted stock awards | 3,870 | 13,112 | |||||
Balance – September 30 | 32,852 | 213,053 | |||||
Accumulated other comprehensive income | |||||||
Balance – January 1 | 1,133 | 2,108 | |||||
Change in net unrealized gains on investments | (972 | ) | 513 | ||||
Balance – September 30 | 161 | 2,621 | |||||
Retained earnings | |||||||
Balance – January 1 | 4,207,699 | 3,778,701 | |||||
Cumulative effect of adoption of ASU 2016-09 (Note 2) | 2,213 | — | |||||
Net (loss) income | (356,870 | ) | 538,798 | ||||
Net loss (income) attributable (available) to redeemable noncontrolling interests | 132,338 | (110,867 | ) | ||||
Dividends on common shares | (38,624 | ) | (38,886 | ) | |||
Dividends on preference shares | (16,786 | ) | (16,786 | ) | |||
Balance – September 30 | 3,929,970 | 4,150,960 | |||||
Total shareholders’ equity | $ | 4,403,012 | $ | 4,807,790 |
Nine months ended | |||||||
September 30, 2017 | September 30, 2016 | ||||||
Cash flows provided by operating activities | |||||||
Net (loss) income | $ | (356,870 | ) | $ | 538,798 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities | |||||||
Amortization, accretion and depreciation | 18,586 | 18,343 | |||||
Equity in undistributed losses of other ventures | 19,559 | 10,173 | |||||
Net realized and unrealized gains on investments | (143,538 | ) | (191,295 | ) | |||
Net unrealized (gains) losses included in net investment income | (2,686 | ) | 17,608 | ||||
Change in: | |||||||
Premiums receivable | (533,943 | ) | (403,322 | ) | |||
Prepaid reinsurance premiums | (194,496 | ) | (280,750 | ) | |||
Reinsurance recoverable | (1,308,740 | ) | (106,243 | ) | |||
Deferred acquisition costs | (99,589 | ) | (152,461 | ) | |||
Reserve for claims and claim expenses | 2,344,019 | 94,054 | |||||
Unearned premiums | 481,496 | 545,034 | |||||
Reinsurance balances payable | 360,471 | 250,686 | |||||
Other | 37,433 | 39,740 | |||||
Net cash provided by operating activities | 621,702 | 380,365 | |||||
Cash flows (used in) provided by investing activities | |||||||
Proceeds from sales and maturities of fixed maturity investments trading | 7,663,002 | 6,509,019 | |||||
Purchases of fixed maturity investments trading | (7,798,285 | ) | (6,744,838 | ) | |||
Proceeds from sales and maturities of fixed maturity investments available for sale | — | 5,931 | |||||
Net sales of equity investments trading | 61,571 | 183,112 | |||||
Net (purchases) sales of short term investments | (146,326 | ) | 128,869 | ||||
Net sales (purchases) of other investments | 5,181 | (56,765 | ) | ||||
Net sales of other assets | — | 400 | |||||
Net cash (used in) provided by investing activities | (214,857 | ) | 25,728 | ||||
Cash flows used in financing activities | |||||||
Dividends paid – RenaissanceRe common shares | (38,624 | ) | (38,886 | ) | |||
Dividends paid – preference shares | (16,786 | ) | (16,786 | ) | |||
RenaissanceRe common share repurchases | (188,591 | ) | (309,434 | ) | |||
Issuance of debt, net of expenses | 295,866 | — | |||||
Repayment of debt | (250,000 | ) | — | ||||
Net third party redeemable noncontrolling interest share transactions | (44,193 | ) | (45,496 | ) | |||
Taxes paid on withholding shares | (13,694 | ) | (10,362 | ) | |||
Net cash used in financing activities | (256,022 | ) | (420,964 | ) | |||
Effect of exchange rate changes on foreign currency cash | 9,596 | 1,316 | |||||
Net increase (decrease) in cash and cash equivalents | 160,419 | (13,555 | ) | ||||
Cash and cash equivalents, beginning of period | 421,157 | 506,885 | |||||
Cash and cash equivalents, end of period | $ | 581,576 | $ | 493,330 |
• | Renaissance Reinsurance, a Bermuda-domiciled reinsurance company, is the Company’s principal reinsurance subsidiary and provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. Effective October 1, 2016, each of Renaissance Reinsurance Specialty Risks Ltd. and Platinum Underwriters Bermuda, Ltd. merged into Renaissance Reinsurance, with Renaissance Reinsurance being the sole surviving entity. |
• | Renaissance Reinsurance U.S. Inc. (“Renaissance Reinsurance U.S.”) is a reinsurance company domiciled in the state of Maryland that provides property, casualty and specialty reinsurance coverages to insurers and reinsurers, primarily in the Americas. |
• | RenaissanceRe Underwriting Managers U.S. LLC, a specialty reinsurance agency domiciled in the state of Connecticut, provides specialty treaty reinsurance solutions on both a quota share and excess of loss basis; and writes business on behalf of RenaissanceRe Specialty U.S. Ltd. (“RenaissanceRe Specialty U.S.”), a Bermuda-domiciled reinsurer, which operates subject to U.S. federal income tax, and RenaissanceRe Syndicate 1458 (“Syndicate 1458”). |
• | Syndicate 1458 is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited (“RenaissanceRe CCL”), a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member and RenaissanceRe Syndicate Management Ltd. (“RSML”), a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458. |
• | The Company also manages property, casualty and specialty reinsurance business written on behalf of joint ventures, which principally include Top Layer Reinsurance Ltd. (“Top Layer Re”), recorded under the equity method of accounting, and DaVinci Reinsurance Ltd. (“DaVinci”). Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of DaVinci’s parent, DaVinciRe Holdings Ltd. (“DaVinciRe”), the results of DaVinci and DaVinciRe are consolidated in the Company’s financial statements and all significant intercompany transactions have been eliminated. Redeemable noncontrolling interest - DaVinciRe represents the interests of external parties with respect to the net income and shareholders’ equity of DaVinciRe. Renaissance Underwriting Managers, Ltd. (“RUM”), a wholly owned subsidiary of RenaissanceRe, acts as exclusive underwriting manager for these joint ventures in return for fee-based income and profit participation. |
• | RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted fund, incorporated under the laws of Bermuda. Medici’s objective is to seek to invest substantially all of its assets in various insurance based investment instruments that have returns primarily tied to property catastrophe risk. Third-party investors have subscribed for a portion of the participating, non-voting common shares of Medici. Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of, Medici’s parent, RenaissanceRe Fund Holdings Ltd. (“Fund Holdings”), the results of Medici and Fund Holdings are consolidated in the Company’s financial statements and all significant inter-company transactions have been eliminated. Redeemable noncontrolling interest - |
• | Effective January 1, 2013, the Company formed and launched a managed joint venture, Upsilon RFO Re Ltd., formerly known as Upsilon Reinsurance II Ltd. (“Upsilon RFO”), a Bermuda domiciled special purpose insurer (“SPI”), to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market. Upsilon RFO is considered a variable interest entity (“VIE”) and the Company is considered the primary beneficiary. As a result, Upsilon RFO is consolidated by the Company and all significant inter-company transactions have been eliminated. |
• | Effective November 13, 2014, the Company incorporated RenaissanceRe Upsilon Fund Ltd. (“Upsilon Fund”), an exempted Bermuda segregated accounts company. Upsilon Fund was formed to provide a fund structure through which third-party investors can invest in reinsurance risk managed by the Company. As a segregated accounts company, Upsilon Fund is permitted to establish segregated accounts to invest in and hold identified pools of assets and liabilities. Each pool of assets and liabilities in each segregated account is structured to be ring-fenced from any claims from the creditors of Upsilon Fund’s general account and from the creditors of other segregated accounts within Upsilon Fund. Third-party investors purchase redeemable, non-voting preference shares linked to specific segregated accounts of Upsilon Fund and own 100% of these shares. Upsilon Fund is an investment company and is considered a VIE. The Company is not considered the primary beneficiary of Upsilon Fund and, as a result, the Company does not consolidate the financial position and results of operations of Upsilon Fund. |
• | Effective November 7, 2016, Fibonacci Reinsurance Ltd. ("Fibonacci Re"), a Bermuda-domiciled SPI, was formed to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raised capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. Fibonacci Re is considered a VIE. The Company is not considered the primary beneficiary of Fibonacci Re and, as a result, the Company does not consolidate the financial position and results of operations of Fibonacci Re. |
September 30, 2017 | December 31, 2016 | ||||||||
U.S. treasuries | $ | 2,956,952 | $ | 2,617,894 | |||||
Agencies | 41,109 | 90,972 | |||||||
Municipal | 521,220 | 519,069 | |||||||
Non-U.S. government (Sovereign debt) | 177,855 | 333,224 | |||||||
Non-U.S. government-backed corporate | 121,892 | 133,300 | |||||||
Corporate | 2,028,750 | 1,877,243 | |||||||
Agency mortgage-backed | 499,310 | 462,493 | |||||||
Non-agency mortgage-backed | 299,530 | 258,944 | |||||||
Commercial mortgage-backed | 263,029 | 409,747 | |||||||
Asset-backed | 183,322 | 188,358 | |||||||
Total fixed maturity investments trading | $ | 7,092,969 | $ | 6,891,244 | |||||
September 30, 2017 | Amortized Cost | Fair Value | |||||||
Due in less than one year | $ | 366,988 | $ | 367,091 | |||||
Due after one through five years | 4,326,788 | 4,324,948 | |||||||
Due after five through ten years | 985,535 | 1,001,975 | |||||||
Due after ten years | 151,964 | 153,764 | |||||||
Mortgage-backed | 1,047,676 | 1,061,869 | |||||||
Asset-backed | 182,536 | 183,322 | |||||||
Total | $ | 7,061,487 | $ | 7,092,969 | |||||
September 30, 2017 | December 31, 2016 | ||||||||
Financials | $ | 275,373 | $ | 275,065 | |||||
Communications and technology | 45,592 | 36,770 | |||||||
Industrial, utilities and energy | 32,922 | 30,303 | |||||||
Consumer | 22,613 | 20,501 | |||||||
Healthcare | 21,113 | 17,245 | |||||||
Basic materials | 4,422 | 3,429 | |||||||
Total | $ | 402,035 | $ | 383,313 | |||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
Fixed maturity investments | $ | 45,305 | $ | 39,959 | $ | 133,080 | $ | 122,056 | |||||||||
Short term investments | 2,771 | 1,174 | 7,476 | 3,401 | |||||||||||||
Equity investments | 930 | 797 | 2,630 | 3,325 | |||||||||||||
Other investments | |||||||||||||||||
Private equity investments | 6,371 | 4,572 | 20,784 | (430 | ) | ||||||||||||
Other | (11,491 | ) | 8,765 | (4,520 | ) | 17,109 | |||||||||||
Cash and cash equivalents | 352 | 246 | 836 | 584 | |||||||||||||
44,238 | 55,513 | 160,286 | 146,045 | ||||||||||||||
Investment expenses | (3,981 | ) | (4,090 | ) | (11,541 | ) | (11,635 | ) | |||||||||
Net investment income | $ | 40,257 | $ | 51,423 | $ | 148,745 | $ | 134,410 | |||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
Gross realized gains | $ | 16,343 | $ | 20,383 | $ | 43,053 | $ | 60,794 | |||||||||
Gross realized losses | (6,126 | ) | (3,363 | ) | (29,902 | ) | (25,832 | ) | |||||||||
Net realized gains on fixed maturity investments | 10,217 | 17,020 | 13,151 | 34,962 | |||||||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 5,545 | (4,235 | ) | 48,940 | 125,501 | ||||||||||||
Net realized and unrealized (losses) gains on investments-related derivatives | (4,020 | ) | 1,727 | (4,344 | ) | (26,873 | ) | ||||||||||
Net realized gains on equity investments trading | 13,675 | 127 | 49,736 | 14,038 | |||||||||||||
Net unrealized gains (losses) on equity investments trading | 16,635 | 45,231 | 36,055 | 43,667 | |||||||||||||
Net realized and unrealized gains on investments | $ | 42,052 | $ | 59,870 | $ | 143,538 | $ | 191,295 | |||||||||
• | 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. 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. |
At September 30, 2017 | 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 | |||||||||||||||||
U.S. treasuries | $ | 2,956,952 | $ | 2,956,952 | $ | — | $ | — | |||||||||
Agencies | 41,109 | — | 41,109 | — | |||||||||||||
Municipal | 521,220 | — | 521,220 | — | |||||||||||||
Non-U.S. government (Sovereign debt) | 177,855 | — | 177,855 | — | |||||||||||||
Non-U.S. government-backed corporate | 121,892 | — | 121,892 | — | |||||||||||||
Corporate | 2,028,750 | — | 2,028,750 | — | |||||||||||||
Agency mortgage-backed | 499,310 | — | 499,310 | — | |||||||||||||
Non-agency mortgage-backed | 299,530 | — | 299,530 | — | |||||||||||||
Commercial mortgage-backed | 263,029 | — | 263,029 | — | |||||||||||||
Asset-backed | 183,322 | — | 183,322 | — | |||||||||||||
Total fixed maturity investments | 7,092,969 | 2,956,952 | 4,136,017 | — | |||||||||||||
Short term investments | 1,497,262 | — | 1,497,262 | — | |||||||||||||
Equity investments trading | 402,035 | 402,035 | — | — | |||||||||||||
Other investments | |||||||||||||||||
Catastrophe bonds | 332,044 | — | 332,044 | — | |||||||||||||
Private equity partnerships (1) | 196,280 | — | — | — | |||||||||||||
Senior secured bank loan funds (1) | 19,572 | — | — | — | |||||||||||||
Hedge funds (1) | 596 | — | — | — | |||||||||||||
Total other investments | 548,492 | — | 332,044 | — | |||||||||||||
Other assets and (liabilities) | |||||||||||||||||
Assumed and ceded (re)insurance contracts (2) | (3,493 | ) | — | — | (3,493 | ) | |||||||||||
Derivatives (3) | 1,944 | (114 | ) | 2,058 | — | ||||||||||||
Other | (8,777 | ) | — | (8,777 | ) | — | |||||||||||
Total other assets and (liabilities) | (10,326 | ) | (114 | ) | (6,719 | ) | (3,493 | ) | |||||||||
$ | 9,530,432 | $ | 3,358,873 | $ | 5,958,604 | $ | (3,493 | ) | |||||||||
(1) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
(2) | Included in assumed and ceded (re)insurance contracts at September 30, 2017 was $1.8 million and $5.3 million of other assets and other liabilities, respectively. |
(3) | See “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, 2016 | 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 | |||||||||||||||||
U.S. treasuries | $ | 2,617,894 | $ | 2,617,894 | $ | — | $ | — | |||||||||
Agencies | 90,972 | — | 90,972 | — | |||||||||||||
Municipal | 519,069 | — | 519,069 | — | |||||||||||||
Non-U.S. government (Sovereign debt) | 333,224 | — | 333,224 | — | |||||||||||||
Non-U.S. government-backed corporate | 133,300 | — | 133,300 | — | |||||||||||||
Corporate | 1,877,243 | — | 1,877,243 | — | |||||||||||||
Agency mortgage-backed | 462,493 | — | 462,493 | — | |||||||||||||
Non-agency mortgage-backed | 258,944 | — | 258,944 | — | |||||||||||||
Commercial mortgage-backed | 409,747 | — | 409,747 | — | |||||||||||||
Asset-backed | 188,358 | — | 188,358 | — | |||||||||||||
Total fixed maturity investments | 6,891,244 | 2,617,894 | 4,273,350 | — | |||||||||||||
Short term investments | 1,368,379 | — | 1,368,379 | — | |||||||||||||
Equity investments trading | 383,313 | 383,313 | — | — | |||||||||||||
Other investments | |||||||||||||||||
Catastrophe bonds | 335,209 | — | 335,209 | — | |||||||||||||
Private equity partnerships (1) | 191,061 | — | — | — | |||||||||||||
Senior secured bank loan funds (1) | 22,040 | — | — | — | |||||||||||||
Hedge funds (1) | 1,495 | — | — | — | |||||||||||||
Total other investments | 549,805 | — | 335,209 | — | |||||||||||||
Other assets and (liabilities) | |||||||||||||||||
Assumed and ceded (re)insurance contracts (2) | (13,004 | ) | — | — | (13,004 | ) | |||||||||||
Derivatives (3) | (8,922 | ) | (646 | ) | (8,276 | ) | — | ||||||||||
Other | (13,105 | ) | — | (13,105 | ) | — | |||||||||||
Total other assets and (liabilities) | (35,031 | ) | (646 | ) | (21,381 | ) | (13,004 | ) | |||||||||
$ | 9,157,710 | $ | 3,000,561 | $ | 5,955,557 | $ | (13,004 | ) | |||||||||
(1) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
(2) | Included in assumed and ceded (re)insurance contracts at December 31, 2016 was $4.4 million and $17.4 million of other assets and other liabilities, respectively. |
(3) | See “Note 13. Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company. |
At September 30, 2017 | Fair Value (Level 3) | Valuation Technique | Unobservable (U) and Observable (O) Inputs | Low | High | Weighted Average or Actual | |||||||||||||||
Other assets and (liabilities) | |||||||||||||||||||||
Assumed and ceded (re)insurance contracts | $ | 582 | Internal valuation model | Bond price (U) | $ | 101.28 | $ | 109.27 | $ | 105.64 | |||||||||||
Liquidity discount (U) | n/a | n/a | 1.3 | % | |||||||||||||||||
Assumed and ceded (re)insurance contracts | (4,075 | ) | Internal valuation model | Net undiscounted cash flows (U) | n/a | n/a | $ | (4,733 | ) | ||||||||||||
Expected loss ratio (U) | n/a | n/a | 24.3 | % | |||||||||||||||||
Net acquisition expense ratio (O) | n/a | n/a | 13.4 | % | |||||||||||||||||
Contract period (O) | 2.0 years | 4.7 years | 4.1 years | ||||||||||||||||||
Discount rate (U) | n/a | n/a | 1.9 | % | |||||||||||||||||
Total other assets and (liabilities) | $ | (3,493 | ) | ||||||||||||||||||
Other assets and (liabilities) | |||||
Balance - July 1, 2017 | $ | (9,502 | ) | ||
Total realized and unrealized gains | |||||
Included in other income | 135 | ||||
Purchases | (63 | ) | |||
Settlements | 5,937 | ||||
Balance - September 30, 2017 | $ | (3,493 | ) | ||
Other assets and (liabilities) | |||||
Balance - January 1, 2017 | $ | (13,004 | ) | ||
Total realized and unrealized gains | |||||
Included in other income | 3,525 | ||||
Purchases | 49 | ||||
Settlements | 5,937 | ||||
Balance - September 30, 2017 | $ | (3,493 | ) | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
Fixed maturity investments trading | Other assets and (liabilities) | Total | |||||||||||
Balance - July 1, 2016 | $ | — | $ | (2,680 | ) | $ | (2,680 | ) | |||||
Total realized and unrealized gains | |||||||||||||
Included in other income | — | 795 | 795 | ||||||||||
Purchases | — | (10,127 | ) | (10,127 | ) | ||||||||
Balance - September 30, 2016 | $ | — | $ | (12,012 | ) | $ | (12,012 | ) | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
Fixed maturity investments trading | Other assets and (liabilities) | Total | |||||||||||
Balance - January 1, 2016 | $ | 7,618 | $ | (5,899 | ) | $ | 1,719 | ||||||
Total realized and unrealized (losses) gains | |||||||||||||
Included in net investment income | (118 | ) | — | (118 | ) | ||||||||
Included in other income | — | 4,587 | 4,587 | ||||||||||
Purchases | — | (10,700 | ) | (10,700 | ) | ||||||||
Settlements | (7,500 | ) | — | (7,500 | ) | ||||||||
Balance - September 30, 2016 | $ | — | $ | (12,012 | ) | $ | (12,012 | ) | |||||
September 30, 2017 | December 31, 2016 | ||||||||
Other investments | $ | 548,492 | $ | 549,805 | |||||
Other assets | $ | 2,383 | $ | 4,379 | |||||
Other liabilities | $ | 5,876 | $ | 17,383 | |||||
At September 30, 2017 | Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period (Minimum Days) | Redemption Notice Period (Maximum Days) | ||||||||||
Private equity partnerships | $ | 196,280 | $ | 300,482 | See below | See below | See below | ||||||||
Senior secured bank loan funds | 19,572 | 23,758 | See below | See below | See below | ||||||||||
Hedge funds | 596 | — | See below | See below | See below | ||||||||||
Total other investments measured using net asset valuations | $ | 216,448 | $ | 324,240 | |||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
Premiums written | |||||||||||||||||
Direct | $ | 64,040 | $ | 53,488 | $ | 205,253 | $ | 154,205 | |||||||||
Assumed | 576,229 | 376,736 | 2,184,521 | 1,897,280 | |||||||||||||
Ceded | (157,048 | ) | (146,002 | ) | (806,672 | ) | (735,672 | ) | |||||||||
Net premiums written | $ | 483,221 | $ | 284,222 | $ | 1,583,102 | $ | 1,315,813 | |||||||||
Premiums earned | |||||||||||||||||
Direct | $ | 61,908 | $ | 43,097 | $ | 176,433 | $ | 114,173 | |||||||||
Assumed | 712,499 | 471,097 | 1,731,845 | 1,392,278 | |||||||||||||
Ceded | (226,615 | ) | (167,673 | ) | (612,176 | ) | (454,922 | ) | |||||||||
Net premiums earned | $ | 547,792 | $ | 346,521 | $ | 1,296,102 | $ | 1,051,529 | |||||||||
Claims and claim expenses | |||||||||||||||||
Gross claims and claim expenses incurred | $ | 2,482,510 | $ | 153,846 | $ | 2,924,217 | $ | 540,696 | |||||||||
Claims and claim expenses recovered | (1,260,814 | ) | (41,271 | ) | (1,366,853 | ) | (133,766 | ) | |||||||||
Net claims and claim expenses incurred | $ | 1,221,696 | $ | 112,575 | $ | 1,557,364 | $ | 406,930 | |||||||||
At September 30, 2017 | Case Reserves | Additional Case Reserves | IBNR | Total | |||||||||||||
Property | $ | 310,871 | $ | 416,758 | $ | 1,917,573 | $ | 2,645,202 | |||||||||
Casualty and Specialty | 655,328 | 132,755 | 1,734,475 | 2,522,558 | |||||||||||||
Other | 9,904 | — | 14,649 | 24,553 | |||||||||||||
Total | $ | 976,103 | $ | 549,513 | $ | 3,666,697 | $ | 5,192,313 | |||||||||
At December 31, 2016 | |||||||||||||||||
Property | $ | 214,954 | $ | 186,308 | $ | 226,512 | $ | 627,774 | |||||||||
Casualty and Specialty | 591,705 | 105,419 | 1,498,002 | 2,195,126 | |||||||||||||
Other | 6,935 | — | 18,459 | 25,394 | |||||||||||||
Total | $ | 813,594 | $ | 291,727 | $ | 1,742,973 | $ | 2,848,294 | |||||||||
Nine months ended September 30, | 2017 | 2016 | |||||||
Net reserves as of January 1 | $ | 2,568,730 | $ | 2,632,519 | |||||
Net incurred related to: | |||||||||
Current year | 1,561,027 | 483,574 | |||||||
Prior years | (3,663 | ) | (76,644 | ) | |||||
Total net incurred | 1,557,364 | 406,930 | |||||||
Net paid related to: | |||||||||
Current year | 158,685 | 39,971 | |||||||
Prior years | 396,411 | 391,047 | |||||||
Total net paid | 555,096 | 431,018 | |||||||
Foreign exchange | 33,011 | 11,899 | |||||||
Net reserves as of September 30 | 3,604,009 | 2,620,330 | |||||||
Reinsurance recoverable as of September 30 | 1,588,304 | 240,769 | |||||||
Gross reserves as of September 30 | $ | 5,192,313 | $ | 2,861,099 | |||||
Nine months ended September 30, | 2017 | 2016 | |||||||
(Favorable) adverse development | (Favorable) adverse development | ||||||||
Property | $ | (16,968 | ) | $ | (37,512 | ) | |||
Casualty and Specialty | 14,015 | (38,327 | ) | ||||||
Other | (710 | ) | (805 | ) | |||||
Total favorable development of prior accident years net claims and claim expenses | $ | (3,663 | ) | $ | (76,644 | ) | |||
Nine months ended September 30, | 2017 | 2016 | |||||||
(Favorable) adverse development | (Favorable) adverse development | ||||||||
Catastrophe net claims and claim expenses | |||||||||
Large catastrophe events | |||||||||
April and May U.S. Tornadoes (2011) | $ | (4,163 | ) | $ | (3,396 | ) | |||
Tohoku Earthquake and Tsunami (2011) | — | (5,894 | ) | ||||||
New Zealand Earthquake (2010) | 5,001 | 8,710 | |||||||
New Zealand Earthquake (2011) | 5,807 | — | |||||||
Other | (3,881 | ) | (7,435 | ) | |||||
Total large catastrophe events | 2,764 | (8,015 | ) | ||||||
Small catastrophe events | |||||||||
Fort McMurray Wildfire (2016) | (6,386 | ) | — | ||||||
Tianjin Explosion (2015) | (4,896 | ) | (6,163 | ) | |||||
Other | (9,293 | ) | (23,334 | ) | |||||
Total small catastrophe events | (20,575 | ) | (29,497 | ) | |||||
Total catastrophe net claims and claim expenses | (17,811 | ) | (37,512 | ) | |||||
Actuarial assumption changes | 843 | — | |||||||
Total net favorable development of prior accident years net claims and claim expenses | $ | (16,968 | ) | $ | (37,512 | ) | |||
Nine months ended September 30, | 2017 | 2016 | |||||||
(Favorable) adverse development | (Favorable) adverse development | ||||||||
Actuarial methods - actual reported claims lower than expected claims | $ | (17,004 | ) | $ | (32,209 | ) | |||
Ogden Rate change | 33,481 | — | |||||||
Actuarial assumption changes | (2,462 | ) | (6,118 | ) | |||||
Total adverse (favorable) development of prior accident years net claims and claim expenses | $ | 14,015 | $ | (38,327 | ) | ||||
September 30, 2017 | December 31, 2016 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
3.450% Senior Notes due 2027 | $ | 296,589 | $ | 295,179 | $ | — | $ | — | |||||||||
3.700% Senior Notes due 2025 | 309,648 | 297,225 | 291,750 | 296,948 | |||||||||||||
5.75% Senior Notes due 2020 | 269,265 | 249,188 | 270,875 | 248,941 | |||||||||||||
Series B 7.50% Senior Notes due 2017 | — | — | 257,500 | 255,352 | |||||||||||||
4.750% Senior Notes due 2025 (DaVinciRe) (1) | 158,742 | 147,653 | 144,675 | 147,422 | |||||||||||||
$ | 1,034,244 | $ | 989,245 | $ | 964,800 | $ | 948,663 | ||||||||||
(1) | RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinciRe. Because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinciRe and RenaissanceRe’s financial exposure to DaVinciRe is limited to its investment in DaVinciRe’s shares and counterparty credit risk arising from reinsurance transactions. |
At September 30, 2017 | Issued or Drawn | ||||
RenaissanceRe Revolving Credit Facility | $ | — | |||
Uncommitted Standby Letter of Credit Facility with Wells Fargo | 99,168 | ||||
Uncommitted Standby Letter of Credit Facility with NAB | 4,356 | ||||
Bilateral Letter of Credit Facility with Citibank Europe | 192,715 | ||||
Funds at Lloyd’s Letter of Credit Facilities | |||||
Renaissance Reinsurance FAL Facility | 180,000 | ||||
Total credit facilities in U.S. dollars | $ | 476,239 | |||
Funds at Lloyd’s Letter of Credit Facilities | |||||
Specialty Risks FAL Facility | £ | 10,000 | |||
Total credit facilities in British Pounds | £ | 10,000 | |||
September 30, 2017 | December 31, 2016 | ||||||||
Redeemable noncontrolling interest - DaVinciRe | $ | 812,342 | $ | 994,458 | |||||
Redeemable noncontrolling interest - Medici | 221,387 | 181,136 | |||||||
Redeemable noncontrolling interests | $ | 1,033,729 | $ | 1,175,594 | |||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
Redeemable noncontrolling interest - DaVinciRe | $ | (195,508 | ) | $ | 30,745 | $ | (127,167 | ) | $ | 101,997 | |||||||
Redeemable noncontrolling interest - Medici | (8,769 | ) | 4,896 | (5,171 | ) | 8,870 | |||||||||||
Net (loss) income attributable to redeemable noncontrolling interests | $ | (204,277 | ) | $ | 35,641 | $ | (132,338 | ) | $ | 110,867 | |||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
Beginning balance | $ | 1,019,918 | $ | 953,443 | $ | 994,458 | $ | 930,955 | |||||||||
Redemption of shares from redeemable noncontrolling interest | (12,068 | ) | (400 | ) | (78,870 | ) | (92,204 | ) | |||||||||
Sale of shares to redeemable noncontrolling interests | — | — | 23,921 | 43,040 | |||||||||||||
Net (loss) attributable to redeemable noncontrolling interest | (195,508 | ) | 30,745 | (127,167 | ) | 101,997 | |||||||||||
Ending balance | $ | 812,342 | $ | 983,788 | $ | 812,342 | $ | 983,788 | |||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||
Beginning balance | $ | 222,165 | $ | 168,960 | $ | 181,136 | $ | 115,009 | |||||||||
Redemption of shares from redeemable noncontrolling interest | (1,400 | ) | (14,389 | ) | (27,310 | ) | (21,729 | ) | |||||||||
Sale of shares to redeemable noncontrolling interests | 9,391 | 21,298 | 72,732 | 78,615 | |||||||||||||
Net (loss) income attributable to redeemable noncontrolling interest | (8,769 | ) | 4,896 | (5,171 | ) | 8,870 | |||||||||||
Ending balance | $ | 221,387 | $ | 180,765 | $ | 221,387 | $ | 180,765 | |||||||||
Three months ended | Nine months ended | ||||||||||||||||
(common shares in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||||
Numerator: | |||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (504,812 | ) | $ | 146,825 | $ | (241,318 | ) | $ | 411,145 | |||||||
Amount allocated to participating common shareholders (1) | (116 | ) | (1,770 | ) | (344 | ) | (4,939 | ) | |||||||||
Net (loss) income allocated to RenaissanceRe common shareholders | $ | (504,928 | ) | $ | 145,055 | $ | (241,662 | ) | $ | 406,206 | |||||||
Denominator: | |||||||||||||||||
Denominator for basic (loss) income per RenaissanceRe common share - weighted average common shares | 39,591 | 40,513 | 39,979 | 41,594 | |||||||||||||
Per common share equivalents of employee stock options and restricted shares | — | 220 | — | 248 | |||||||||||||
Denominator for diluted (loss) income per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions | 39,591 | 40,733 | 39,979 | 41,842 | |||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – basic | $ | (12.75 | ) | $ | 3.58 | $ | (6.04 | ) | $ | 9.77 | |||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – diluted | $ | (12.75 | ) | $ | 3.56 | $ | (6.04 | ) | $ | 9.71 | |||||||
(1) | Represents earnings attributable to holders of unvested restricted shares issued pursuant to the Company’s 2001 Stock Incentive Plan, 2010 Performance-Based Equity Incentive Plan, 2016 Long-Term Incentive Plan and to the Company’s non-employee directors. |
Three months ended September 30, 2017 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 325,395 | $ | 314,881 | $ | (7 | ) | $ | 640,269 | ||||||||
Net premiums written | $ | 269,393 | $ | 213,835 | $ | (7 | ) | $ | 483,221 | ||||||||
Net premiums earned | $ | 336,838 | $ | 210,961 | $ | (7 | ) | $ | 547,792 | ||||||||
Net claims and claim expenses incurred | 1,044,418 | 177,433 | (155 | ) | 1,221,696 | ||||||||||||
Acquisition expenses | 17,514 | 59,248 | (1 | ) | 76,761 | ||||||||||||
Operational expenses | 25,123 | 17,389 | 25 | 42,537 | |||||||||||||
Underwriting (loss) income | $ | (750,217 | ) | $ | (43,109 | ) | $ | 124 | (793,202 | ) | |||||||
Net investment income | 40,257 | 40,257 | |||||||||||||||
Net foreign exchange losses | (156 | ) | (156 | ) | |||||||||||||
Equity in earnings of other ventures | 1,794 | 1,794 | |||||||||||||||
Other income | 2,996 | 2,996 | |||||||||||||||
Net realized and unrealized gains on investments | 42,052 | 42,052 | |||||||||||||||
Corporate expenses | (4,413 | ) | (4,413 | ) | |||||||||||||
Interest expense | (11,799 | ) | (11,799 | ) | |||||||||||||
Loss before taxes | (722,471 | ) | |||||||||||||||
Income tax benefit | 18,977 | 18,977 | |||||||||||||||
Net loss attributable to redeemable noncontrolling interests | 204,277 | 204,277 | |||||||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | |||||||||||||
Net loss attributable to RenaissanceRe common shareholders | $ | (504,812 | ) | ||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 1,036,586 | $ | 172,675 | $ | — | $ | 1,209,261 | |||||||||
Net claims and claim expenses incurred – prior accident years | 7,832 | 4,758 | (155 | ) | 12,435 | ||||||||||||
Net claims and claim expenses incurred – total | $ | 1,044,418 | $ | 177,433 | $ | (155 | ) | $ | 1,221,696 | ||||||||
Net claims and claim expense ratio – current accident year | 307.7 | % | 81.9 | % | 220.8 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | 2.4 | % | 2.2 | % | 2.2 | % | |||||||||||
Net claims and claim expense ratio – calendar year | 310.1 | % | 84.1 | % | 223.0 | % | |||||||||||
Underwriting expense ratio | 12.6 | % | 36.3 | % | 21.8 | % | |||||||||||
Combined ratio | 322.7 | % | 120.4 | % | 244.8 | % | |||||||||||
Nine months ended September 30, 2017 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 1,345,271 | $ | 1,044,510 | $ | (7 | ) | $ | 2,389,774 | ||||||||
Net premiums written | $ | 895,728 | $ | 687,381 | $ | (7 | ) | $ | 1,583,102 | ||||||||
Net premiums earned | $ | 716,024 | $ | 580,085 | $ | (7 | ) | $ | 1,296,102 | ||||||||
Net claims and claim expenses incurred | 1,116,273 | 441,801 | (710 | ) | 1,557,364 | ||||||||||||
Acquisition expenses | 75,117 | 173,179 | (2 | ) | 248,294 | ||||||||||||
Operational expenses | 76,841 | 54,708 | 37 | 131,586 | |||||||||||||
Underwriting (loss) income | $ | (552,207 | ) | $ | (89,603 | ) | $ | 668 | (641,142 | ) | |||||||
Net investment income | 148,745 | 148,745 | |||||||||||||||
Net foreign exchange gains | 11,118 | 11,118 | |||||||||||||||
Equity in earnings of other ventures | 5,830 | 5,830 | |||||||||||||||
Other income | 7,053 | 7,053 | |||||||||||||||
Net realized and unrealized gains on investments | 143,538 | 143,538 | |||||||||||||||
Corporate expenses | (14,335 | ) | (14,335 | ) | |||||||||||||
Interest expense | (32,416 | ) | (32,416 | ) | |||||||||||||
Loss before taxes | (371,609 | ) | |||||||||||||||
Income tax benefit | 14,739 | 14,739 | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | 132,338 | 132,338 | |||||||||||||||
Dividends on preference shares | (16,786 | ) | (16,786 | ) | |||||||||||||
Net loss attributable to RenaissanceRe common shareholders | $ | (241,318 | ) | ||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 1,133,241 | $ | 427,786 | $ | — | $ | 1,561,027 | |||||||||
Net claims and claim expenses incurred – prior accident years | (16,968 | ) | 14,015 | (710 | ) | (3,663 | ) | ||||||||||
Net claims and claim expenses incurred – total | $ | 1,116,273 | $ | 441,801 | $ | (710 | ) | $ | 1,557,364 | ||||||||
Net claims and claim expense ratio – current accident year | 158.3 | % | 73.7 | % | 120.4 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (2.4 | )% | 2.5 | % | (0.2 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 155.9 | % | 76.2 | % | 120.2 | % | |||||||||||
Underwriting expense ratio | 21.2 | % | 39.2 | % | 29.3 | % | |||||||||||
Combined ratio | 177.1 | % | 115.4 | % | 149.5 | % | |||||||||||
Three months ended September 30, 2016 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 119,904 | $ | 310,320 | $ | — | $ | 430,224 | |||||||||
Net premiums written | $ | 90,909 | $ | 193,313 | $ | — | $ | 284,222 | |||||||||
Net premiums earned | $ | 172,661 | $ | 173,860 | $ | — | $ | 346,521 | |||||||||
Net claims and claim expenses incurred | 23,539 | 89,844 | (808 | ) | 112,575 | ||||||||||||
Acquisition expenses | 21,663 | 58,917 | — | 80,580 | |||||||||||||
Operational expenses | 24,258 | 16,217 | 18 | 40,493 | |||||||||||||
Underwriting income | $ | 103,201 | $ | 8,882 | $ | 790 | 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 noncontrolling interests | 186,745 | ||||||||||||||||
Income tax benefit | 1,316 | 1,316 | |||||||||||||||
Net income attributable to 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 | $ | 42,062 | $ | 116,298 | $ | — | $ | 158,360 | |||||||||
Net claims and claim expenses incurred – prior accident years | (18,523 | ) | (26,454 | ) | (808 | ) | (45,785 | ) | |||||||||
Net claims and claim expenses incurred – total | $ | 23,539 | $ | 89,844 | $ | (808 | ) | $ | 112,575 | ||||||||
Net claims and claim expense ratio – current accident year | 24.4 | % | 66.9 | % | 45.7 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (10.8 | )% | (15.2 | )% | (13.2 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 13.6 | % | 51.7 | % | 32.5 | % | |||||||||||
Underwriting expense ratio | 26.6 | % | 43.2 | % | 34.9 | % | |||||||||||
Combined ratio | 40.2 | % | 94.9 | % | 67.4 | % | |||||||||||
Nine months ended September 30, 2016 | Property | Casualty and Specialty | Other | Total | |||||||||||||
Gross premiums written | $ | 1,058,816 | $ | 992,669 | $ | — | $ | 2,051,485 | |||||||||
Net premiums written | $ | 674,361 | $ | 641,452 | $ | — | $ | 1,315,813 | |||||||||
Net premiums earned | $ | 538,953 | $ | 512,576 | $ | — | $ | 1,051,529 | |||||||||
Net claims and claim expenses incurred | 125,618 | 282,117 | (805 | ) | 406,930 | ||||||||||||
Acquisition expenses | 71,176 | 144,001 | — | 215,177 | |||||||||||||
Operational expenses | 79,441 | 68,261 | 99 | 147,801 | |||||||||||||
Underwriting income | $ | 262,718 | $ | 18,197 | $ | 706 | 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 noncontrolling interests | 546,838 | ||||||||||||||||
Income tax expense | (8,040 | ) | (8,040 | ) | |||||||||||||
Net income attributable to 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 | $ | 163,130 | $ | 320,444 | $ | — | $ | 483,574 | |||||||||
Net claims and claim expenses incurred – prior accident years | (37,512 | ) | (38,327 | ) | (805 | ) | (76,644 | ) | |||||||||
Net claims and claim expenses incurred – total | $ | 125,618 | $ | 282,117 | $ | (805 | ) | $ | 406,930 | ||||||||
Net claims and claim expense ratio – current accident year | 30.3 | % | 62.5 | % | 46.0 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (7.0 | )% | (7.5 | )% | (7.3 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 23.3 | % | 55.0 | % | 38.7 | % | |||||||||||
Underwriting expense ratio | 28.0 | % | 41.4 | % | 34.5 | % | |||||||||||
Combined ratio | 51.3 | % | 96.4 | % | 73.2 | % | |||||||||||
Derivative Assets | |||||||||||||||||||||||
At September 30, 2017 | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | Balance Sheet Location | Collateral | Net Amount | |||||||||||||||||
Interest rate futures | $ | 740 | 614 | $ | 126 | Other assets | $ | — | $ | 126 | |||||||||||||
Interest rate swaps | 551 | 277 | 274 | Other assets | — | 274 | |||||||||||||||||
Foreign currency forward contracts (1) | 4,758 | 557 | 4,201 | Other assets | — | 4,201 | |||||||||||||||||
Foreign currency forward contracts (2) | 43 | 14 | 29 | Other assets | — | 29 | |||||||||||||||||
Credit default swaps | 956 | 308 | 648 | Other assets | — | 648 | |||||||||||||||||
Total | $ | 7,048 | $ | 1,770 | $ | 5,278 | $ | — | $ | 5,278 | |||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
At September 30, 2017 | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Balance Sheet | Net Amounts of Liabilities Presented in the Balance Sheet | Balance Sheet Location | Collateral Pledged | Net Amount | |||||||||||||||||
Interest rate futures | $ | 854 | 614 | $ | 240 | Other liabilities | $ | 240 | $ | — | |||||||||||||
Interest rate swaps | 280 | 277 | 3 | Other liabilities | 3 | — | |||||||||||||||||
Foreign currency forward contracts (1) | 2,996 | — | 2,996 | Other liabilities | — | 2,996 | |||||||||||||||||
Foreign currency forward contracts (2) | 90 | 14 | 76 | Other liabilities | — | 76 | |||||||||||||||||
Credit default swaps | 327 | 308 | 19 | Other liabilities | — | 19 | |||||||||||||||||
Total | $ | 4,547 | $ | 1,213 | $ | 3,334 | $ | 243 | $ | 3,091 | |||||||||||||
(1) | Contracts used to manage foreign currency risks in underwriting and non-investment operations. |
(2) | Contracts used to manage foreign currency risks in investment operations. |
Derivative Assets | |||||||||||||||||||||||
At December 31, 2016 | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | Balance Sheet Location | Collateral | Net Amount | |||||||||||||||||
Interest rate futures | $ | 1,384 | 1,235 | $ | 149 | Other assets | $ | — | $ | 149 | |||||||||||||
Foreign currency forward contracts (1) | 774 | — | 774 | Other assets | — | 774 | |||||||||||||||||
Foreign currency forward contracts (2) | 621 | 447 | 174 | Other assets | — | 174 | |||||||||||||||||
Credit default swaps | 1,429 | 23 | 1,406 | Other assets | — | 1,406 | |||||||||||||||||
Total | $ | 4,208 | $ | 1,705 | $ | 2,503 | $ | — | $ | 2,503 | |||||||||||||
Derivative Liabilities | |||||||||||||||||||||||
At December 31, 2016 | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Balance Sheet | Net Amounts of Liabilities Presented in the Balance Sheet | Balance Sheet Location | Collateral Pledged | Net Amount | |||||||||||||||||
Interest rate futures | $ | 2,030 | 1,235 | $ | 795 | Other liabilities | $ | 789 | $ | 6 | |||||||||||||
Foreign currency forward contracts (1) | 10,550 | 397 | 10,153 | Other liabilities | — | 10,153 | |||||||||||||||||
Foreign currency forward contracts (2) | 766 | 447 | 319 | Other liabilities | — | 319 | |||||||||||||||||
Credit default swaps | 181 | 23 | 158 | Other liabilities | — | 158 | |||||||||||||||||
Total | $ | 13,527 | $ | 2,102 | $ | 11,425 | $ | 789 | $ | 10,636 | |||||||||||||
(1) | Contracts used to manage foreign currency risks in underwriting and non-investment operations. |
(2) | Contracts used to manage foreign currency risks in investment operations. |
Location of gain (loss) recognized on derivatives | Amount of gain (loss) recognized on derivatives | ||||||||||
Three months ended September 30, | 2017 | 2016 | |||||||||
Interest rate futures | Net realized and unrealized gains on investments | $ | (3,016 | ) | $ | 1,040 | |||||
Interest rate swaps | Net realized and unrealized gains on investments | 271 | — | ||||||||
Foreign currency forward contracts (1) | Net foreign exchange (losses) gains | 2,056 | 5,097 | ||||||||
Foreign currency forward contracts (2) | Net foreign exchange (losses) gains | (40 | ) | (489 | ) | ||||||
Credit default swaps | Net realized and unrealized gains on investments | (1,275 | ) | 687 | |||||||
Total | $ | (2,004 | ) | $ | 6,335 | ||||||
Location of gain (loss) recognized on derivatives | Amount of gain (loss) recognized on derivatives | ||||||||||
Nine months ended September 30, | 2017 | 2016 | |||||||||
Interest rate futures | Net realized and unrealized gains on investments | $ | (4,064 | ) | $ | (27,775 | ) | ||||
Interest rate swaps | Net realized and unrealized gains on investments | 271 | — | ||||||||
Foreign currency forward contracts (1) | Net foreign exchange (losses) gains | 8,339 | (92 | ) | |||||||
Foreign currency forward contracts (2) | Net foreign exchange (losses) gains | (940 | ) | (3,706 | ) | ||||||
Credit default swaps | Net realized and unrealized gains on investments | (551 | ) | 902 | |||||||
Total | $ | 3,055 | $ | (30,671 | ) | ||||||
(1) | Contracts used to manage foreign currency risks in underwriting and non-investment operations. |
(2) | Contracts used to manage foreign currency risks in investment operations. |
Condensed Consolidating Balance Sheet at September 30, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Total investments | $ | 193,268 | $ | 130,802 | $ | — | $ | 35,098 | $ | 9,283,010 | $ | — | $ | 9,642,178 | |||||||||||||
Cash and cash equivalents | 12,370 | 226 | 10 | 7,663 | 561,307 | — | 581,576 | ||||||||||||||||||||
Investments in subsidiaries | 3,968,721 | 37,834 | — | 1,152,247 | — | (5,158,802 | ) | — | |||||||||||||||||||
Due from subsidiaries and affiliates | 107,746 | 91,891 | — | — | — | (199,637 | ) | — | |||||||||||||||||||
Premiums receivable | — | — | — | — | 1,521,266 | — | 1,521,266 | ||||||||||||||||||||
Prepaid reinsurance premiums | — | — | — | — | 635,756 | — | 635,756 | ||||||||||||||||||||
Reinsurance recoverable | — | — | — | — | 1,588,304 | — | 1,588,304 | ||||||||||||||||||||
Accrued investment income | 125 | 197 | — | 59 | 37,985 | — | 38,366 | ||||||||||||||||||||
Deferred acquisition costs | — | — | — | — | 434,914 | — | 434,914 | ||||||||||||||||||||
Receivable for investments sold | 9,042 | 13,472 | — | 101 | 171,143 | — | 193,758 | ||||||||||||||||||||
Other assets | 429,594 | 36,825 | — | 435,815 | 98,023 | (836,238 | ) | 164,019 | |||||||||||||||||||
Goodwill and other intangible assets | 126,246 | — | — | — | 118,541 | — | 244,787 | ||||||||||||||||||||
Total assets | $ | 4,847,112 | $ | 311,247 | $ | 10 | $ | 1,630,983 | $ | 14,450,249 | $ | (6,194,677 | ) | $ | 15,044,924 | ||||||||||||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Reserve for claims and claim expenses | $ | — | $ | — | $ | — | $ | — | $ | 5,192,313 | $ | — | $ | 5,192,313 | |||||||||||||
Unearned premiums | — | — | — | — | 1,713,069 | — | 1,713,069 | ||||||||||||||||||||
Debt | 417,000 | — | — | 841,592 | 147,653 | (417,000 | ) | 989,245 | |||||||||||||||||||
Amounts due to subsidiaries and affiliates | 2,950 | 55 | — | 97,365 | — | (100,370 | ) | — | |||||||||||||||||||
Reinsurance balances payable | — | — | — | — | 1,034,454 | — | 1,034,454 | ||||||||||||||||||||
Payable for investments purchased | 8,989 | 17,938 | — | — | 350,616 | — | 377,543 | ||||||||||||||||||||
Other liabilities | 15,161 | 927 | — | 9,926 | 282,647 | (7,102 | ) | 301,559 | |||||||||||||||||||
Total liabilities | 444,100 | 18,920 | — | 948,883 | 8,720,752 | (524,472 | ) | 9,608,183 | |||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | 1,033,729 | — | 1,033,729 | ||||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||||||
Total shareholders’ equity | 4,403,012 | 292,327 | 10 | 682,100 | 4,695,768 | (5,670,205 | ) | 4,403,012 | |||||||||||||||||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 4,847,112 | $ | 311,247 | $ | 10 | $ | 1,630,983 | $ | 14,450,249 | $ | (6,194,677 | ) | $ | 15,044,924 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Balance Sheet at December 31, 2016 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Total investments | $ | 387,274 | $ | 119,163 | $ | 267,556 | $ | 45,027 | $ | 8,497,948 | $ | — | $ | 9,316,968 | |||||||||||||
Cash and cash equivalents | 7,067 | 162 | 6,671 | 9,397 | 397,860 | — | 421,157 | ||||||||||||||||||||
Investments in subsidiaries | 4,074,769 | 34,761 | 843,089 | 1,165,413 | — | (6,118,032 | ) | — | |||||||||||||||||||
Due from subsidiaries and affiliates | 7,413 | 91,892 | — | — | — | (99,305 | ) | — | |||||||||||||||||||
Premiums receivable | — | — | — | — | 987,323 | — | 987,323 | ||||||||||||||||||||
Prepaid reinsurance premiums | — | — | — | — | 441,260 | — | 441,260 | ||||||||||||||||||||
Reinsurance recoverable | — | — | — | — | 279,564 | — | 279,564 | ||||||||||||||||||||
Accrued investment income | 105 | 289 | 551 | 106 | 37,025 | — | 38,076 | ||||||||||||||||||||
Deferred acquisition costs | — | — | — | — | 335,325 | — | 335,325 | ||||||||||||||||||||
Receivable for investments sold | 136 | 2 | 99 | 45 | 105,559 | — | 105,841 | ||||||||||||||||||||
Other assets | 410,757 | 37,204 | 4,689 | 127,572 | 118,098 | (522,938 | ) | 175,382 | |||||||||||||||||||
Goodwill and other intangible assets | 130,407 | — | — | — | 120,779 | — | 251,186 | ||||||||||||||||||||
Total assets | $ | 5,017,928 | $ | 283,473 | $ | 1,122,655 | $ | 1,347,560 | $ | 11,320,741 | $ | (6,740,275 | ) | $ | 12,352,082 | ||||||||||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Reserve for claims and claim expenses | $ | — | $ | — | $ | — | $ | — | $ | 2,848,294 | $ | — | $ | 2,848,294 | |||||||||||||
Unearned premiums | — | — | — | — | 1,231,573 | — | 1,231,573 | ||||||||||||||||||||
Debt | 117,000 | — | 255,352 | 545,889 | 147,422 | (117,000 | ) | 948,663 | |||||||||||||||||||
Amounts due to subsidiaries and affiliates | 14,644 | 42 | 123 | 96,061 | — | (110,870 | ) | — | |||||||||||||||||||
Reinsurance balances payable | — | — | — | — | 673,983 | — | 673,983 | ||||||||||||||||||||
Payable for investments purchased | — | — | — | — | 305,714 | — | 305,714 | ||||||||||||||||||||
Other liabilities | 19,707 | 10,544 | — | 13,350 | 270,610 | (12,527 | ) | 301,684 | |||||||||||||||||||
Total liabilities | 151,351 | 10,586 | 255,475 | 655,300 | 5,477,596 | (240,397 | ) | 6,309,911 | |||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | 1,175,594 | — | 1,175,594 | ||||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||||||||
Total shareholders’ equity | 4,866,577 | 272,887 | 867,180 | 692,260 | 4,667,551 | (6,499,878 | ) | 4,866,577 | |||||||||||||||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | 5,017,928 | $ | 283,473 | $ | 1,122,655 | $ | 1,347,560 | $ | 11,320,741 | $ | (6,740,275 | ) | $ | 12,352,082 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the three months ended September 30, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | — | $ | 547,792 | $ | — | $ | 547,792 | |||||||||||||
Net investment income (loss) | 5,725 | 544 | (3 | ) | 1,335 | 39,342 | (6,686 | ) | 40,257 | ||||||||||||||||||
Net foreign exchange losses | — | — | — | — | (156 | ) | — | (156 | ) | ||||||||||||||||||
Equity in earnings of other ventures | — | — | — | 38 | 1,756 | — | 1,794 | ||||||||||||||||||||
Other income | 1 | — | — | — | 2,995 | — | 2,996 | ||||||||||||||||||||
Net realized and unrealized gains on investments | 110 | 2,186 | — | 51 | 39,705 | — | 42,052 | ||||||||||||||||||||
Total revenues | 5,836 | 2,730 | (3 | ) | 1,424 | 631,434 | (6,686 | ) | 634,735 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | — | 1,221,696 | — | 1,221,696 | ||||||||||||||||||||
Acquisition expenses | — | — | — | — | 76,761 | — | 76,761 | ||||||||||||||||||||
Operational expenses | 2,910 | 17 | 1 | 6,266 | 37,752 | (4,409 | ) | 42,537 | |||||||||||||||||||
Corporate expenses | 4,634 | — | — | — | (221 | ) | — | 4,413 | |||||||||||||||||||
Interest expense | 183 | — | — | 9,258 | 2,541 | (183 | ) | 11,799 | |||||||||||||||||||
Total expenses | 7,727 | 17 | 1 | 15,524 | 1,338,529 | (4,592 | ) | 1,357,206 | |||||||||||||||||||
(Loss) income before equity in net (loss) income of subsidiaries and taxes | (1,891 | ) | 2,713 | (4 | ) | (14,100 | ) | (707,095 | ) | (2,094 | ) | (722,471 | ) | ||||||||||||||
(Loss) equity in net (loss) income of subsidiaries | (499,408 | ) | 928 | — | (16,352 | ) | — | 514,832 | — | ||||||||||||||||||
(Loss) Income before taxes | (501,299 | ) | 3,641 | (4 | ) | (30,452 | ) | (707,095 | ) | 512,738 | (722,471 | ) | |||||||||||||||
Income tax benefit (expense) | 2,082 | (890 | ) | 29 | 3,307 | 14,449 | — | 18,977 | |||||||||||||||||||
Net (loss) income | (499,217 | ) | 2,751 | 25 | (27,145 | ) | (692,646 | ) | 512,738 | (703,494 | ) | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | — | — | — | — | 204,277 | — | 204,277 | ||||||||||||||||||||
Net (loss) income attributable to RenaissanceRe | (499,217 | ) | 2,751 | 25 | (27,145 | ) | (488,369 | ) | 512,738 | (499,217 | ) | ||||||||||||||||
Dividends on preference shares | (5,595 | ) | — | — | — | — | — | (5,595 | ) | ||||||||||||||||||
Net (loss) income (attributable) available attributable to RenaissanceRe common shareholders | $ | (504,812 | ) | $ | 2,751 | $ | 25 | $ | (27,145 | ) | $ | (488,369 | ) | $ | 512,738 | $ | (504,812 | ) |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive (Loss) Income for the three months ended September 30, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Comprehensive (loss) income | |||||||||||||||||||||||||||
Net (loss) income | $ | (499,217 | ) | $ | 2,751 | $ | 25 | $ | (27,145 | ) | $ | (692,646 | ) | $ | 512,738 | $ | (703,494 | ) | |||||||||
Change in net unrealized gains on investments | — | — | — | — | 300 | — | 300 | ||||||||||||||||||||
Comprehensive (loss) income | (499,217 | ) | 2,751 | 25 | (27,145 | ) | (692,346 | ) | 512,738 | (703,194 | ) | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | — | — | — | — | 204,277 | — | 204,277 | ||||||||||||||||||||
Comprehensive loss attributable to redeemable noncontrolling interests | — | — | — | — | 204,277 | — | 204,277 | ||||||||||||||||||||
Comprehensive (loss) income attributable to RenaissanceRe | $ | (499,217 | ) | $ | 2,751 | $ | 25 | $ | (27,145 | ) | $ | (488,069 | ) | $ | 512,738 | $ | (498,917 | ) |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the nine months ended September 30, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | — | $ | 1,296,102 | $ | — | $ | 1,296,102 | |||||||||||||
Net investment income | 16,466 | 1,436 | 1,373 | 1,843 | 146,816 | (19,189 | ) | 148,745 | |||||||||||||||||||
Net foreign exchange (losses) gains | (1 | ) | — | — | — | 11,119 | — | 11,118 | |||||||||||||||||||
Equity in (losses) earnings of other ventures | — | — | — | (412 | ) | 6,242 | — | 5,830 | |||||||||||||||||||
Other income | — | — | — | — | 7,053 | — | 7,053 | ||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 155 | 6,528 | 4,916 | (217 | ) | 132,156 | — | 143,538 | |||||||||||||||||||
Total revenues | 16,620 | 7,964 | 6,289 | 1,214 | 1,599,488 | (19,189 | ) | 1,612,386 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | — | 1,557,364 | — | 1,557,364 | ||||||||||||||||||||
Acquisition expenses | — | — | — | — | 248,294 | — | 248,294 | ||||||||||||||||||||
Operational expenses | 9,398 | 57 | 86 | 20,892 | 116,212 | (15,059 | ) | 131,586 | |||||||||||||||||||
Corporate expenses | 14,640 | — | — | — | (305 | ) | — | 14,335 | |||||||||||||||||||
Interest expense | 464 | — | 2,461 | 22,401 | 7,554 | (464 | ) | 32,416 | |||||||||||||||||||
Total expenses | 24,502 | 57 | 2,547 | 43,293 | 1,929,119 | (15,523 | ) | 1,983,995 | |||||||||||||||||||
(Loss) income before equity in net (loss) income of subsidiaries and taxes | (7,882 | ) | 7,907 | 3,742 | (42,079 | ) | (329,631 | ) | (3,666 | ) | (371,609 | ) | |||||||||||||||
Equity in net (loss) income of subsidiaries | (219,309 | ) | 3,234 | 28,028 | 20,584 | — | 167,463 | — | |||||||||||||||||||
(Loss) Income before taxes | (227,191 | ) | 11,141 | 31,770 | (21,495 | ) | (329,631 | ) | 163,797 | (371,609 | ) | ||||||||||||||||
Income tax benefit (expense) | 2,659 | (2,572 | ) | (1,175 | ) | 9,281 | 6,546 | — | 14,739 | ||||||||||||||||||
Net (loss) income | (224,532 | ) | 8,569 | 30,595 | (12,214 | ) | (323,085 | ) | 163,797 | (356,870 | ) | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | — | — | — | — | 132,338 | — | 132,338 | ||||||||||||||||||||
Net (loss) income attributable to RenaissanceRe | (224,532 | ) | 8,569 | 30,595 | (12,214 | ) | (190,747 | ) | 163,797 | (224,532 | ) | ||||||||||||||||
Dividends on preference shares | (16,786 | ) | — | — | — | — | — | (16,786 | ) | ||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (241,318 | ) | $ | 8,569 | $ | 30,595 | $ | (12,214 | ) | $ | (190,747 | ) | $ | 163,797 | $ | (241,318 | ) |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive (Loss) Income for the nine months ended September 30, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Comprehensive (loss) income | |||||||||||||||||||||||||||
Net (loss) income | $ | (224,532 | ) | $ | 8,569 | $ | 30,595 | $ | (12,214 | ) | $ | (323,085 | ) | $ | 163,797 | $ | (356,870 | ) | |||||||||
Change in net unrealized gains on investments | — | — | — | — | (972 | ) | — | (972 | ) | ||||||||||||||||||
Comprehensive (loss) income | (224,532 | ) | 8,569 | 30,595 | (12,214 | ) | (324,057 | ) | 163,797 | (357,842 | ) | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | — | — | — | — | 132,338 | — | 132,338 | ||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | — | — | — | — | 132,338 | — | 132,338 | ||||||||||||||||||||
Comprehensive (loss) income attributable to RenaissanceRe | $ | (224,532 | ) | $ | 8,569 | $ | 30,595 | $ | (12,214 | ) | $ | (191,719 | ) | $ | 163,797 | $ | (225,504 | ) |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the three months ended September 30, 2016 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | — | $ | 346,521 | $ | — | $ | 346,521 | |||||||||||||
Net investment income | 5,892 | 441 | 795 | 140 | 50,406 | (6,251 | ) | 51,423 | |||||||||||||||||||
Net foreign exchange losses | — | — | — | — | (5,986 | ) | — | (5,986 | ) | ||||||||||||||||||
Equity in losses of other ventures | — | — | — | — | (11,630 | ) | — | (11,630 | ) | ||||||||||||||||||
Other income | 21 | — | — | — | 2,247 | — | 2,268 | ||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (336 | ) | 1,397 | 2,105 | — | 56,704 | — | 59,870 | |||||||||||||||||||
Total revenues | 5,577 | 1,838 | 2,900 | 140 | 438,262 | (6,251 | ) | 442,466 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | — | 112,575 | — | 112,575 | ||||||||||||||||||||
Acquisition expenses | — | — | — | — | 80,580 | — | 80,580 | ||||||||||||||||||||
Operational expenses | (1,233 | ) | 36 | 60 | 5,021 | 40,018 | (3,409 | ) | 40,493 | ||||||||||||||||||
Corporate expenses | 11,617 | — | — | — | (80 | ) | — | 11,537 | |||||||||||||||||||
Interest expense | 140 | — | 1,476 | 6,545 | 2,515 | (140 | ) | 10,536 | |||||||||||||||||||
Total expenses | 10,524 | 36 | 1,536 | 11,566 | 235,608 | (3,549 | ) | 255,721 | |||||||||||||||||||
Income (loss) before equity in net income of subsidiaries and taxes | (4,947 | ) | 1,802 | 1,364 | (11,426 | ) | 202,654 | (2,702 | ) | 186,745 | |||||||||||||||||
Equity in net income of subsidiaries | 158,862 | 1,463 | (2,694 | ) | 1,130 | — | (158,761 | ) | — | ||||||||||||||||||
Income (loss) before taxes | 153,915 | 3,265 | (1,330 | ) | (10,296 | ) | 202,654 | (161,463 | ) | 186,745 | |||||||||||||||||
Income tax (expense) benefit | (1,495 | ) | (324 | ) | (401 | ) | 2,785 | 751 | — | 1,316 | |||||||||||||||||
Net income (loss) | 152,420 | 2,941 | (1,731 | ) | (7,511 | ) | 203,405 | (161,463 | ) | 188,061 | |||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | (35,641 | ) | — | (35,641 | ) | ||||||||||||||||||
Net income (loss) attributable to RenaissanceRe | 152,420 | 2,941 | (1,731 | ) | (7,511 | ) | 167,764 | (161,463 | ) | 152,420 | |||||||||||||||||
Dividends on preference shares | (5,595 | ) | — | — | — | — | — | (5,595 | ) | ||||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 146,825 | $ | 2,941 | $ | (1,731 | ) | $ | (7,511 | ) | $ | 167,764 | $ | (161,463 | ) | $ | 146,825 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended September 30, 2016 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||
Net income (loss) | $ | 152,420 | $ | 2,941 | $ | (1,731 | ) | $ | (7,511 | ) | $ | 203,405 | $ | (161,463 | ) | $ | 188,061 | ||||||||||
Change in net unrealized gains on investments | — | — | — | — | 284 | — | 284 | ||||||||||||||||||||
Comprehensive income (loss) | 152,420 | 2,941 | (1,731 | ) | (7,511 | ) | 203,689 | (161,463 | ) | 188,345 | |||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | (35,641 | ) | — | (35,641 | ) | ||||||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | — | — | — | — | (35,641 | ) | — | (35,641 | ) | ||||||||||||||||||
Comprehensive income (loss) attributable to RenaissanceRe | $ | 152,420 | $ | 2,941 | $ | (1,731 | ) | $ | (7,511 | ) | $ | 168,048 | $ | (161,463 | ) | $ | 152,704 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Operations for the nine months ended September 30, 2016 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | — | $ | — | $ | 1,051,529 | $ | — | $ | 1,051,529 | |||||||||||||
Net investment income | 18,499 | 1,395 | 3,074 | 421 | 129,038 | (18,017 | ) | 134,410 | |||||||||||||||||||
Net foreign exchange losses | (2 | ) | — | — | — | (8,366 | ) | — | (8,368 | ) | |||||||||||||||||
Equity in losses of other ventures | — | — | — | — | (3,997 | ) | — | (3,997 | ) | ||||||||||||||||||
Other (loss) income | (770 | ) | — | — | — | 9,771 | — | 9,001 | |||||||||||||||||||
Net realized and unrealized gains on investments | 4,951 | 3,651 | 7,483 | — | 175,210 | — | 191,295 | ||||||||||||||||||||
Total revenues | 22,678 | 5,046 | 10,557 | 421 | 1,353,185 | (18,017 | ) | 1,373,870 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Net claims and claim expenses incurred | — | — | — | — | 406,930 | — | 406,930 | ||||||||||||||||||||
Acquisition expenses | — | — | — | — | 215,177 | — | 215,177 | ||||||||||||||||||||
Operational expenses | (3,038 | ) | (61 | ) | 176 | 16,603 | 145,466 | (11,345 | ) | 147,801 | |||||||||||||||||
Corporate expenses | 22,411 | 203 | — | 7 | 2,893 | — | 25,514 | ||||||||||||||||||||
Interest expense | 421 | — | 4,429 | 19,632 | 7,549 | (421 | ) | 31,610 | |||||||||||||||||||
Total expenses | 19,794 | 142 | 4,605 | 36,242 | 778,015 | (11,766 | ) | 827,032 | |||||||||||||||||||
Income before equity in net income of subsidiaries and taxes | 2,884 | 4,904 | 5,952 | (35,821 | ) | 575,170 | (6,251 | ) | 546,838 | ||||||||||||||||||
Equity in net income of subsidiaries | 424,077 | 2,996 | 31,727 | 42,774 | — | (501,574 | ) | — | |||||||||||||||||||
Income before taxes | 426,961 | 7,900 | 37,679 | 6,953 | 575,170 | (507,825 | ) | 546,838 | |||||||||||||||||||
Income tax benefit (expense) | 970 | (1,791 | ) | (1,583 | ) | 8,456 | (14,092 | ) | — | (8,040 | ) | ||||||||||||||||
Net income | 427,931 | 6,109 | 36,096 | 15,409 | 561,078 | (507,825 | ) | 538,798 | |||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | (110,867 | ) | — | (110,867 | ) | ||||||||||||||||||
Net income attributable to RenaissanceRe | 427,931 | 6,109 | 36,096 | 15,409 | 450,211 | (507,825 | ) | 427,931 | |||||||||||||||||||
Dividends on preference shares | (16,786 | ) | — | — | — | — | — | (16,786 | ) | ||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 411,145 | $ | 6,109 | $ | 36,096 | $ | 15,409 | $ | 450,211 | $ | (507,825 | ) | $ | 411,145 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive Income for the nine months ended September 30, 2016 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | Consolidating Adjustments (2) | RenaissanceRe Consolidated | ||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||
Net income | $ | 427,931 | $ | 6,109 | $ | 36,096 | $ | 15,409 | $ | 561,078 | $ | (507,825 | ) | $ | 538,798 | ||||||||||||
Change in net unrealized gains on investments | — | — | — | — | 513 | — | 513 | ||||||||||||||||||||
Comprehensive income | 427,931 | 6,109 | 36,096 | 15,409 | 561,591 | (507,825 | ) | 539,311 | |||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | — | — | — | — | (110,867 | ) | — | (110,867 | ) | ||||||||||||||||||
Comprehensive income attributable to redeemable noncontrolling interests | — | — | — | — | (110,867 | ) | — | (110,867 | ) | ||||||||||||||||||
Comprehensive income available to RenaissanceRe | $ | 427,931 | $ | 6,109 | $ | 36,096 | $ | 15,409 | $ | 450,724 | $ | (507,825 | ) | $ | 428,444 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
(2) | Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2017 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | RenaissanceRe Consolidated | |||||||||||||||||
Cash flows (used in) provided by operating activities | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (6,870 | ) | $ | (8,209 | ) | $ | (2,262 | ) | $ | (343,093 | ) | $ | 982,136 | $ | 621,702 | |||||||
Cash flows provided by (used in) investing activities | |||||||||||||||||||||||
Proceeds from sales and maturities of fixed maturity investments trading | 106,761 | 74,455 | 289,741 | 279,830 | 6,912,215 | 7,663,002 | |||||||||||||||||
Purchases of fixed maturity investments trading | (118,402 | ) | (69,168 | ) | (143,991 | ) | (270,785 | ) | (7,195,939 | ) | (7,798,285 | ) | |||||||||||
Net (purchases) sales of equity investments trading | — | (1,708 | ) | 85,324 | — | (22,045 | ) | 61,571 | |||||||||||||||
Net sales (purchases) of short term investments | 205,864 | (4,495 | ) | 41,299 | (305 | ) | (388,689 | ) | (146,326 | ) | |||||||||||||
Net sales of other investments | — | — | — | — | 5,181 | 5,181 | |||||||||||||||||
Dividends and return of capital from subsidiaries | 285,515 | 9,175 | — | 41,866 | (336,556 | ) | — | ||||||||||||||||
Contributions to subsidiaries | (500,000 | ) | — | (26,649 | ) | (9,175 | ) | 535,824 | — | ||||||||||||||
Due to (from) subsidiary | 290,130 | 14 | (123 | ) | 4,062 | (294,083 | ) | — | |||||||||||||||
Net cash provided by (used in) investing activities | 269,868 | 8,273 | 245,601 | 45,493 | (784,092 | ) | (214,857 | ) | |||||||||||||||
Cash flows (used in) provided by financing activities | |||||||||||||||||||||||
Dividends paid – RenaissanceRe common shares | (38,624 | ) | — | — | — | — | (38,624 | ) | |||||||||||||||
Dividends paid – preference shares | (16,786 | ) | — | — | — | — | (16,786 | ) | |||||||||||||||
RenaissanceRe common share repurchases | (188,591 | ) | — | — | — | — | (188,591 | ) | |||||||||||||||
Issuance of debt, net of expenses | — | — | — | 295,866 | — | 295,866 | |||||||||||||||||
Repayment of debt | — | — | (250,000 | ) | — | — | (250,000 | ) | |||||||||||||||
Net third party redeemable noncontrolling interest share transactions | — | — | — | — | (44,193 | ) | (44,193 | ) | |||||||||||||||
Taxes paid on withholding shares | (13,694 | ) | — | — | — | — | (13,694 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (257,695 | ) | — | (250,000 | ) | 295,866 | (44,193 | ) | (256,022 | ) | |||||||||||||
Effect of exchange rate changes on foreign currency cash | — | — | — | — | 9,596 | 9,596 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 5,303 | 64 | (6,661 | ) | (1,734 | ) | 163,447 | 160,419 | |||||||||||||||
Cash and cash equivalents, beginning of period | 7,067 | 162 | 6,671 | 9,397 | 397,860 | 421,157 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 12,370 | $ | 226 | $ | 10 | $ | 7,663 | $ | 561,307 | $ | 581,576 |
(1) | Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2016 | RenaissanceRe Holdings Ltd. (Parent Guarantor) | RenRe North America Holdings Inc. (Subsidiary Issuer) | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) | RenaissanceRe Consolidated | |||||||||||||||||
Cash flows (used in) provided by operating activities | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (7,644 | ) | $ | 1,847 | $ | (11,062 | ) | $ | (35,171 | ) | $ | 432,395 | $ | 380,365 | ||||||||
Cash flows provided by (used in) investing activities | |||||||||||||||||||||||
Proceeds from sales and maturities of fixed maturity investments trading | 272,710 | 62,959 | 113,947 | — | 6,059,403 | 6,509,019 | |||||||||||||||||
Purchases of fixed maturity investments trading | (336,345 | ) | (115,849 | ) | (259,165 | ) | — | (6,033,479 | ) | (6,744,838 | ) | ||||||||||||
Proceeds from sales and maturities of fixed maturity investments available for sale | — | — | — | — | 5,931 | 5,931 | |||||||||||||||||
Net (purchases) sales of equity investments trading | — | (2,392 | ) | 192,911 | — | (7,407 | ) | 183,112 | |||||||||||||||
Net sales (purchases) of short term investments | 122,656 | 67,986 | (41,881 | ) | — | (19,892 | ) | 128,869 | |||||||||||||||
Net purchases of other investments | — | — | — | — | (56,765 | ) | (56,765 | ) | |||||||||||||||
Net sales of other assets | — | — | — | — | 400 | 400 | |||||||||||||||||
Dividends and return of capital from subsidiaries | 408,189 | 2,900 | — | 9,300 | (420,389 | ) | — | ||||||||||||||||
Contributions to subsidiaries | (91,001 | ) | — | — | — | 91,001 | — | ||||||||||||||||
Due to (from) subsidiaries | (3,497 | ) | (22,502 | ) | (108 | ) | 27,724 | (1,617 | ) | — | |||||||||||||
Net cash provided by (used in) investing activities | 372,712 | (6,898 | ) | 5,704 | 37,024 | (382,814 | ) | 25,728 | |||||||||||||||
Cash flows used in financing activities | |||||||||||||||||||||||
Dividends paid – RenaissanceRe common shares | (38,886 | ) | — | — | — | — | (38,886 | ) | |||||||||||||||
Dividends paid – preference shares | (16,786 | ) | — | — | — | — | (16,786 | ) | |||||||||||||||
RenaissanceRe common share repurchases | (309,434 | ) | — | — | — | — | (309,434 | ) | |||||||||||||||
Net third party redeemable noncontrolling interest share transactions | — | — | — | — | (45,496 | ) | (45,496 | ) | |||||||||||||||
Taxes paid on withholding shares | — | — | — | — | (10,362 | ) | (10,362 | ) | |||||||||||||||
Net cash used in financing activities | (365,106 | ) | — | — | — | (55,858 | ) | (420,964 | ) | ||||||||||||||
Effect of exchange rate changes on foreign currency cash | — | — | — | — | 1,316 | 1,316 | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (38 | ) | (5,051 | ) | (5,358 | ) | 1,853 | (4,961 | ) | (13,555 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 10,185 | 5,908 | 7,103 | 677 | 483,012 | 506,885 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 10,147 | $ | 857 | $ | 1,745 | $ | 2,530 | $ | 478,051 | $ | 493,330 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except per share amounts and percentages) | |||||||||||||
Statement of operations highlights | |||||||||||||
Gross premiums written | $ | 640,269 | $ | 430,224 | $ | 210,045 | |||||||
Net premiums written | $ | 483,221 | $ | 284,222 | $ | 198,999 | |||||||
Net premiums earned | $ | 547,792 | $ | 346,521 | $ | 201,271 | |||||||
Net claims and claim expenses incurred | 1,221,696 | 112,575 | 1,109,121 | ||||||||||
Acquisition expenses | 76,761 | 80,580 | (3,819 | ) | |||||||||
Operational expenses | 42,537 | 40,493 | 2,044 | ||||||||||
Underwriting (loss) income | $ | (793,202 | ) | $ | 112,873 | $ | (906,075 | ) | |||||
Net investment income | $ | 40,257 | $ | 51,423 | $ | (11,166 | ) | ||||||
Net realized and unrealized gains on investments | 42,052 | 59,870 | (17,818 | ) | |||||||||
Change in net unrealized gains on fixed maturity investments available for sale | — | (113 | ) | 113 | |||||||||
Total investment result | $ | 82,309 | $ | 111,180 | $ | (28,871 | ) | ||||||
Net (loss) income | $ | (703,494 | ) | $ | 188,061 | $ | (891,555 | ) | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (504,812 | ) | $ | 146,825 | $ | (651,637 | ) | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – diluted | $ | (12.75 | ) | $ | 3.56 | $ | (16.31 | ) | |||||
Dividends per common share | $ | 0.32 | $ | 0.31 | $ | 0.01 | |||||||
Key ratios | |||||||||||||
Net claims and claim expense ratio – current accident year | 220.8 | % | 45.7 | % | 175.1 | % | |||||||
Net claims and claim expense ratio – prior accident years | 2.2 | % | (13.2 | )% | 15.4 | % | |||||||
Net claims and claim expense ratio – calendar year | 223.0 | % | 32.5 | % | 190.5 | % | |||||||
Underwriting expense ratio | 21.8 | % | 34.9 | % | (13.1 | )% | |||||||
Combined ratio | 244.8 | % | 67.4 | % | 177.4 | % | |||||||
Return on average common equity - annualized | (47.2 | )% | 13.5 | % | (60.7 | )% | |||||||
Book value | September 30, 2017 | June 30, 2017 | Change | ||||||||||
Book value per common share | $ | 100.00 | $ | 113.08 | $ | (13.08 | ) | ||||||
Accumulated dividends per common share | 17.68 | 17.36 | 0.32 | ||||||||||
Book value per common share plus accumulated dividends | $ | 117.68 | $ | 130.44 | $ | (12.76 | ) | ||||||
Change in book value per common share plus change in accumulated dividends | (11.3 | )% | |||||||||||
Balance sheet highlights | September 30, 2017 | June 30, 2017 | Change | ||||||||||
Total assets | $ | 15,044,924 | $ | 13,705,680 | $ | 1,339,244 | |||||||
Total shareholders’ equity attributable to RenaissanceRe | $ | 4,403,012 | $ | 4,955,255 | $ | (552,243 | ) | ||||||
• | Hurricanes Harvey, Irma and Maria, the Mexico City Earthquake and certain losses associated with aggregate loss contracts (“Q3 2017 Aggregate Losses”)(collectively referred to as the “Q3 2017 Large Loss Events”) - the Q3 2017 Large Loss Events had a net negative impact on the net loss attributable to RenaissanceRe common shareholders of $615.1 million and a net negative impact on our underwriting results of $838.7 million, adding 156.0 percentage points to our combined ratio in the third quarter of 2017. See below for additional information regarding the net negative impact of the Q3 2017 Large Loss Events. |
• | Net Loss Attributable to Redeemable Noncontrolling Interests - net loss attributable to redeemable noncontrolling interests in the third quarter of 2017 was $204.3 million, compared to net income attributable to redeemable noncontrolling interests of $35.6 million in the third quarter of 2016, principally due to significant underwriting losses associated with Q3 2017 Large Loss Events incurred by DaVinciRe, and a decrease in our ownership in DaVinciRe to 23.5% at September 30, 2017, compared to 24.0% at September 30, 2016; |
• | Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was a gain of $82.3 million in the third quarter of 2017, compared to a gain of $111.2 million in the third quarter of 2016, a decrease of $28.9 million. The decrease in our total investment result was principally driven by unrealized losses in our other investment portfolio, specifically our catastrophe bond portfolio, which was impacted by a number of large catastrophe events occurring in the third quarter of 2017, combined with lower unrealized gains on our equity investments trading portfolio primarily due to lower returns in the current quarter on certain larger positions; and |
• | Equity in Earnings of Other Ventures - our equity in earnings of other ventures was $1.8 million in the third quarter of 2017, compared to a loss of $11.6 million in the third quarter of 2016, an improvement of $13.4 million. Principally impacting this improvement was the non-recurrence of equity in losses of other ventures during the third quarter of 2016, primarily the result of a $15.0 million loss related to the Company’s 50% ownership in Top Layer Re. During the third quarter of 2016, Top Layer Re reduced its estimated ultimate claim and claim expenses and related reinsurance recoverable associated with the 2011 Tohoku Earthquake to $Nil as a result of favorable loss emergence, resulting in an increase in underwriting income for Top Layer Re for the third quarter of 2016. However, the increase in underwriting income was more than offset by the reversal of an unrealized foreign exchange gain related to the reserve for claims and claim expenses, which were denominated in Japanese Yen. While Top Layer Re had fully hedged its net economic exposure to Japanese Yen associated with this loss since inception, because the hedged net liability went to $Nil, Top Layer Re recorded an unrealized foreign exchange loss for the third quarter of 2016. If the reserve for net claims and claim expenses had |
Three months ended September 30, 2017 | Hurricane Harvey | Hurricane Irma | Hurricane Maria | Mexico City Earthquake | Q3 2017 Aggregate Losses | Total | |||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||
Net claims and claim expenses incurred | $ | (275,409 | ) | $ | (300,536 | ) | $ | (236,478 | ) | $ | (68,068 | ) | $ | (128,779 | ) | $ | (1,009,270 | ) | |||||||
Reinstatement premiums earned | 65,715 | 67,342 | 29,138 | 6,078 | 1,500 | 169,773 | |||||||||||||||||||
Ceded reinstatement premiums earned | (9,035 | ) | (18,190 | ) | (1,537 | ) | (43 | ) | — | (28,805 | ) | ||||||||||||||
(Lost) earned profit commissions | (11,358 | ) | 16,192 | 13,329 | 3,329 | 8,146 | 29,638 | ||||||||||||||||||
Net negative impact on underwriting result | (230,087 | ) | (235,192 | ) | (195,548 | ) | (58,704 | ) | (119,133 | ) | (838,664 | ) | |||||||||||||
Redeemable noncontrolling interest - DaVinciRe | 39,089 | 69,152 | 63,064 | 14,254 | 38,000 | 223,559 | |||||||||||||||||||
Net negative impact on net loss attributable to RenaissanceRe common shareholders | $ | (190,998 | ) | $ | (166,040 | ) | $ | (132,484 | ) | $ | (44,450 | ) | $ | (81,133 | ) | $ | (615,105 | ) | |||||||
Percentage point impact on consolidated combined ratio | 30.1 | 32.9 | 29.9 | 9.2 | 21.4 | 156.0 | |||||||||||||||||||
Net negative impact on Property segment underwriting result | $ | (219,976 | ) | $ | (232,783 | ) | $ | (178,896 | ) | $ | (57,860 | ) | $ | (119,133 | ) | $ | (808,648 | ) | |||||||
Net negative impact on Casualty and Specialty segment underwriting result | (10,111 | ) | (2,409 | ) | (16,652 | ) | (844 | ) | — | (30,016 | ) | ||||||||||||||
Net negative impact on underwriting result | $ | (230,087 | ) | $ | (235,192 | ) | $ | (195,548 | ) | $ | (58,704 | ) | $ | (119,133 | ) | $ | (838,664 | ) | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except percentages) | |||||||||||||
Gross premiums written | $ | 325,395 | $ | 119,904 | $ | 205,491 | |||||||
Net premiums written | $ | 269,393 | $ | 90,909 | $ | 178,484 | |||||||
Net premiums earned | $ | 336,838 | $ | 172,661 | $ | 164,177 | |||||||
Net claims and claim expenses incurred | 1,044,418 | 23,539 | 1,020,879 | ||||||||||
Acquisition expenses | 17,514 | 21,663 | (4,149 | ) | |||||||||
Operational expenses | 25,123 | 24,258 | 865 | ||||||||||
Underwriting (loss) income | $ | (750,217 | ) | $ | 103,201 | $ | (853,418 | ) | |||||
Net claims and claim expenses incurred – current accident year | $ | 1,036,586 | $ | 42,062 | $ | 994,524 | |||||||
Net claims and claim expenses incurred – prior accident years | 7,832 | (18,523 | ) | 26,355 | |||||||||
Net claims and claim expenses incurred – total | $ | 1,044,418 | $ | 23,539 | $ | 1,020,879 | |||||||
Net claims and claim expense ratio – current accident year | 307.7 | % | 24.4 | % | 283.3 | % | |||||||
Net claims and claim expense ratio – prior accident years | 2.4 | % | (10.8 | )% | 13.2 | % | |||||||
Net claims and claim expense ratio – calendar year | 310.1 | % | 13.6 | % | 296.5 | % | |||||||
Underwriting expense ratio | 12.6 | % | 26.6 | % | (14.0 | )% | |||||||
Combined ratio | 322.7 | % | 40.2 | % | 282.5 | % | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Ceded premiums written - Property | $ | 56,002 | $ | 28,995 | $ | 27,008 | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Profit commissions and fees | $ | 32,690 | $ | 19,430 | $ | 13,260 | |||||||
Decrease in underwriting expense ratio | 9.7 | % | 11.3 | % | (1.6 | )% | |||||||
Net impact of profit commissions and fees | $ | (9,850 | ) | $ | 31,036 | $ | (40,886 | ) | |||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except percentages) | |||||||||||||
Gross premiums written | $ | 314,881 | $ | 310,320 | $ | 4,561 | |||||||
Net premiums written | $ | 213,835 | $ | 193,313 | $ | 20,522 | |||||||
Net premiums earned | $ | 210,961 | $ | 173,860 | $ | 37,101 | |||||||
Net claims and claim expenses incurred | 177,433 | 89,844 | 87,589 | ||||||||||
Acquisition expenses | 59,248 | 58,917 | 331 | ||||||||||
Operational expenses | 17,389 | 16,217 | 1,172 | ||||||||||
Underwriting (loss) income | $ | (43,109 | ) | $ | 8,882 | $ | (51,991 | ) | |||||
Net claims and claim expenses incurred – current accident year | $ | 172,675 | $ | 116,298 | $ | 56,377 | |||||||
Net claims and claim expenses incurred – prior accident years | 4,758 | (26,454 | ) | 31,212 | |||||||||
Net claims and claim expenses incurred – total | $ | 177,433 | $ | 89,844 | $ | 87,589 | |||||||
Net claims and claim expense ratio – current accident year | 81.9 | % | 66.9 | % | 15.0 | % | |||||||
Net claims and claim expense ratio – prior accident years | 2.2 | % | (15.2 | )% | 17.4 | % | |||||||
Net claims and claim expense ratio – calendar year | 84.1 | % | 51.7 | % | 32.4 | % | |||||||
Underwriting expense ratio | 36.3 | % | 43.2 | % | (6.9 | )% | |||||||
Combined ratio | 120.4 | % | 94.9 | % | 25.5 | % | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Ceded premiums written - Casualty and Specialty | $ | 101,046 | $ | 117,007 | $ | (15,961 | ) | ||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except percentages) | |||||||||||||
Profit commissions and fees | $ | 8,409 | $ | 9,483 | $ | (1,074 | ) | ||||||
Decrease in underwriting expense ratio | 4.0 | % | 5.5 | % | (1.5 | )% | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Fixed maturity investments | $ | 45,305 | $ | 39,959 | $ | 5,346 | |||||||
Short term investments | 2,771 | 1,174 | 1,597 | ||||||||||
Equity investments trading | 930 | 797 | 133 | ||||||||||
Other investments | |||||||||||||
Private equity investments | 6,371 | 4,572 | 1,799 | ||||||||||
Other | (11,491 | ) | 8,765 | (20,256 | ) | ||||||||
Cash and cash equivalents | 352 | 246 | 106 | ||||||||||
44,238 | 55,513 | (11,275 | ) | ||||||||||
Investment expenses | (3,981 | ) | (4,090 | ) | 109 | ||||||||
Net investment income | $ | 40,257 | $ | 51,423 | $ | (11,166 | ) | ||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Gross realized gains | $ | 16,343 | $ | 20,383 | $ | (4,040 | ) | ||||||
Gross realized losses | (6,126 | ) | (3,363 | ) | (2,763 | ) | |||||||
Net realized gains on fixed maturity investments | 10,217 | 17,020 | (6,803 | ) | |||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 5,545 | (4,235 | ) | 9,780 | |||||||||
Net realized and unrealized (losses) gains on investments-related derivatives | (4,020 | ) | 1,727 | (5,747 | ) | ||||||||
Net realized gains on equity investments trading | 13,675 | 127 | 13,548 | ||||||||||
Net unrealized gains on equity investments trading | 16,635 | 45,231 | (28,596 | ) | |||||||||
Net realized and unrealized gains on investments | $ | 42,052 | $ | 59,870 | $ | (17,818 | ) | ||||||
• | net realized and unrealized gains on equity investments trading of $30.3 million in the third quarter of 2017, compared to net realized and unrealized gains of $45.4 million in the third quarter of 2016, |
• | net realized and unrealized gains on our portfolio of fixed maturity investments trading of $15.8 million during the third quarter of 2017, compared to net realized and unrealized gains of $12.8 million in the third quarter of 2016, an increase of $3.0 million, principally driven by a slight increase in interest rates across the yield curve in the third quarter of 2017, compared to a more significant upward shift in the yield curve generating losses in the third quarter of 2016; and |
• | net realized and unrealized losses on certain investments-related derivatives of $4.0 million in the third quarter of 2017, compared to gains of $1.7 million in the third quarter of 2016, reflecting weaker performance of $5.7 million. |
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Foreign exchange losses | $ | (156 | ) | $ | (5,986 | ) | $ | 5,830 | |||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Top Layer Re | $ | 2,722 | $ | (14,951 | ) | $ | 17,673 | ||||||
Tower Hill Companies | (383 | ) | 3,422 | (3,805 | ) | ||||||||
Other | (545 | ) | (101 | ) | (444 | ) | |||||||
Total equity in earnings (losses) of other ventures | $ | 1,794 | $ | (11,630 | ) | $ | 13,424 | ||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Assumed and ceded reinsurance contracts accounted for as derivatives and deposits | $ | 2,793 | $ | 2,195 | $ | 598 | |||||||
Other items | 203 | 73 | 130 | ||||||||||
Total other income | $ | 2,996 | $ | 2,268 | $ | 728 | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Corporate expenses | $ | 4,413 | $ | 11,537 | $ | (7,124 | ) | ||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Income tax benefit | $ | 18,977 | $ | 1,316 | $ | 17,661 | |||||||
Three months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Net loss (income) attributable to redeemable noncontrolling interests | $ | 204,277 | $ | (35,641 | ) | $ | 239,918 | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except per share amounts and percentages) | |||||||||||||
Statement of operations highlights | |||||||||||||
Gross premiums written | $ | 2,389,774 | $ | 2,051,485 | $ | 338,289 | |||||||
Net premiums written | $ | 1,583,102 | $ | 1,315,813 | $ | 267,289 | |||||||
Net premiums earned | $ | 1,296,102 | $ | 1,051,529 | $ | 244,573 | |||||||
Net claims and claim expenses incurred | 1,557,364 | 406,930 | 1,150,434 | ||||||||||
Acquisition expenses | 248,294 | 215,177 | 33,117 | ||||||||||
Operational expenses | 131,586 | 147,801 | (16,215 | ) | |||||||||
Underwriting (loss) income | $ | (641,142 | ) | $ | 281,621 | $ | (922,763 | ) | |||||
Net investment income | $ | 148,745 | $ | 134,410 | $ | 14,335 | |||||||
Net realized and unrealized gains on investments | 143,538 | 191,295 | (47,757 | ) | |||||||||
Change in net unrealized gains on fixed maturity investments available for sale | — | (472 | ) | 472 | |||||||||
Total investment result | $ | 292,283 | $ | 325,233 | $ | (32,950 | ) | ||||||
Net (loss) income | $ | (356,870 | ) | $ | 538,798 | $ | (895,668 | ) | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (241,318 | ) | $ | 411,145 | $ | (652,463 | ) | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – diluted | $ | (6.04 | ) | $ | 9.71 | $ | (15.75 | ) | |||||
Dividends per common share | $ | 0.96 | $ | 0.93 | $ | 0.03 | |||||||
Key ratios | |||||||||||||
Net claims and claim expense ratio – current accident year | 120.4 | % | 46.0 | % | 74.4 | % | |||||||
Net claims and claim expense ratio – prior accident years | (0.2 | )% | (7.3 | )% | 7.1 | % | |||||||
Net claims and claim expense ratio – calendar year | 120.2 | % | 38.7 | % | 81.5 | % | |||||||
Underwriting expense ratio | 29.3 | % | 34.5 | % | (5.2 | )% | |||||||
Combined ratio | 149.5 | % | 73.2 | % | 76.3 | % | |||||||
Return on average common equity - annualized | (7.4 | )% | 12.6 | % | (20.0 | )% | |||||||
Book value | September 30, 2017 | December 31, 2016 | Change | ||||||||||
Book value per common share | $ | 100.00 | $ | 108.45 | $ | (8.45 | ) | ||||||
Accumulated dividends per common share | 17.68 | 16.72 | 0.96 | ||||||||||
Book value per common share plus accumulated dividends | $ | 117.68 | $ | 125.17 | $ | (7.49 | ) | ||||||
Change in book value per common share plus change in accumulated dividends | (6.9 | )% | |||||||||||
Balance sheet highlights | September 30, 2017 | December 31, 2016 | Change | ||||||||||
Total assets | $ | 15,044,924 | $ | 12,352,082 | $ | 2,692,842 | |||||||
Total shareholders’ equity attributable to RenaissanceRe | $ | 4,403,012 | $ | 4,866,577 | $ | (463,565 | ) | ||||||
• | Q3 2017 Large Loss Events - the Q3 2017 Large Loss Events had a net negative impact on our net loss attributable to RenaissanceRe common shareholders of $615.1 million and a net negative impact on our underwriting results of $838.7 million, adding 66.6 percentage points to our combined ratio in the first nine months of 2017. See below for additional information regarding the net negative impact of the Q3 2017 Large Loss Events. |
• | Net Loss Attributable to Redeemable Noncontrolling Interests - our net loss attributable to redeemable noncontrolling interests was $132.3 million in the first nine months of 2017, compared to net income attributable to redeemable noncontrolling interests of $110.9 million in the first nine months of 2016. The decrease was principally due to significant underwriting losses associated with the Q3 2017 Large Loss Events incurred by DaVinciRe, and a decrease in the Company’s ownership in DaVinciRe to 23.5% at September 30, 2017, compared to 24.0% at September 30, 2016; and |
• | Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was a gain of $292.3 million in the first nine months of 2017, compared to a gain of $325.2 million in the first nine months of 2016. Impacting the investment result were higher returns in our equity investments trading and private equity portfolios and higher net investment income due to higher average invested assets in our fixed maturity investments trading portfolio, partially offset by lower unrealized gains in our fixed maturity investments trading portfolio driven by the flattening of the yield curve during the first nine months of 2017, compared to the first nine months of 2016, which experienced a pronounced downward shift in the yield curve. |
Nine months ended September 30, 2017 | Hurricane Harvey | Hurricane Irma | Hurricane Maria | Mexico City Earthquake | Q3 2017 Aggregate Losses | Total | |||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||
Net claims and claim expenses incurred | $ | (275,409 | ) | $ | (300,536 | ) | $ | (236,478 | ) | $ | (68,068 | ) | $ | (128,779 | ) | $ | (1,009,270 | ) | |||||||
Reinstatement premiums earned | 65,715 | 67,342 | 29,138 | 6,078 | 1,500 | 169,773 | |||||||||||||||||||
Ceded reinstatement premiums earned | (9,035 | ) | (18,190 | ) | (1,537 | ) | (43 | ) | — | (28,805 | ) | ||||||||||||||
(Lost) earned profit commissions | (11,358 | ) | 16,192 | 13,329 | 3,329 | 8,146 | 29,638 | ||||||||||||||||||
Net negative impact on underwriting result | (230,087 | ) | (235,192 | ) | (195,548 | ) | (58,704 | ) | (119,133 | ) | (838,664 | ) | |||||||||||||
Redeemable noncontrolling interest - DaVinciRe | 39,089 | 69,152 | 63,064 | 14,254 | 38,000 | 223,559 | |||||||||||||||||||
Net negative impact on net loss attributable to RenaissanceRe common shareholders | $ | (190,998 | ) | $ | (166,040 | ) | $ | (132,484 | ) | $ | (44,450 | ) | $ | (81,133 | ) | $ | (615,105 | ) | |||||||
Percentage point impact on consolidated combined ratio | 16.3 | 16.9 | 14.4 | 4.4 | 9.2 | 66.6 | |||||||||||||||||||
Net negative impact on Property segment underwriting result | $ | (219,976 | ) | $ | (232,783 | ) | $ | (178,896 | ) | $ | (57,860 | ) | $ | (119,133 | ) | $ | (808,648 | ) | |||||||
Net negative impact on Casualty and Specialty segment underwriting result | (10,111 | ) | (2,409 | ) | (16,652 | ) | (844 | ) | — | (30,016 | ) | ||||||||||||||
Net negative impact on underwriting result | $ | (230,087 | ) | $ | (235,192 | ) | $ | (195,548 | ) | $ | (58,704 | ) | $ | (119,133 | ) | $ | (838,664 | ) | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except percentages) | |||||||||||||
Gross premiums written | $ | 1,345,271 | $ | 1,058,816 | $ | 286,455 | |||||||
Net premiums written | $ | 895,728 | $ | 674,361 | $ | 221,367 | |||||||
Net premiums earned | $ | 716,024 | $ | 538,953 | $ | 177,071 | |||||||
Net claims and claim expenses incurred | 1,116,273 | 125,618 | 990,655 | ||||||||||
Acquisition expenses | 75,117 | 71,176 | 3,941 | ||||||||||
Operational expenses | 76,841 | 79,441 | (2,600 | ) | |||||||||
Underwriting (loss) income | $ | (552,207 | ) | $ | 262,718 | $ | (814,925 | ) | |||||
Net claims and claim expenses incurred – current accident year | $ | 1,133,241 | $ | 163,130 | $ | 970,111 | |||||||
Net claims and claim expenses incurred – prior accident years | (16,968 | ) | (37,512 | ) | 20,544 | ||||||||
Net claims and claim expenses incurred – total | $ | 1,116,273 | $ | 125,618 | $ | 990,655 | |||||||
Net claims and claim expense ratio – current accident year | 158.3 | % | 30.3 | % | 128.0 | % | |||||||
Net claims and claim expense ratio – prior accident years | (2.4 | )% | (7.0 | )% | 4.6 | % | |||||||
Net claims and claim expense ratio – calendar year | 155.9 | % | 23.3 | % | 132.6 | % | |||||||
Underwriting expense ratio | 21.2 | % | 28.0 | % | (6.8 | )% | |||||||
Combined ratio | 177.1 | % | 51.3 | % | 125.8 | % | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Ceded premiums written - Property | $ | 449,543 | $ | 384,455 | $ | 65,088 | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Profit commissions and fees | $ | 74,580 | $ | 51,777 | $ | 22,803 | |||||||
Decrease in underwriting expense ratio | 10.4 | % | 9.6 | % | 0.8 | % | |||||||
Net impact of profit commissions and fees | $ | 56,150 | $ | 83,763 | $ | (27,613 | ) | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except percentages) | |||||||||||||
Gross premiums written | $ | 1,044,510 | $ | 992,669 | $ | 51,841 | |||||||
Net premiums written | $ | 687,381 | $ | 641,452 | $ | 45,929 | |||||||
Net premiums earned | $ | 580,085 | $ | 512,576 | $ | 67,509 | |||||||
Net claims and claim expenses incurred | 441,801 | 282,117 | 159,684 | ||||||||||
Acquisition expenses | 173,179 | 144,001 | 29,178 | ||||||||||
Operational expenses | 54,708 | 68,261 | (13,553 | ) | |||||||||
Underwriting (loss) income | $ | (89,603 | ) | $ | 18,197 | $ | (107,800 | ) | |||||
Net claims and claim expenses incurred – current accident year | $ | 427,786 | $ | 320,444 | $ | 107,342 | |||||||
Net claims and claim expenses incurred – prior accident years | 14,015 | (38,327 | ) | 52,342 | |||||||||
Net claims and claim expenses incurred – total | $ | 441,801 | $ | 282,117 | $ | 159,684 | |||||||
Net claims and claim expense ratio – current accident year | 73.7 | % | 62.5 | % | 11.2 | % | |||||||
Net claims and claim expense ratio – prior accident years | 2.5 | % | (7.5 | )% | 10.0 | % | |||||||
Net claims and claim expense ratio – calendar year | 76.2 | % | 55.0 | % | 21.2 | % | |||||||
Underwriting expense ratio | 39.2 | % | 41.4 | % | (2.2 | )% | |||||||
Combined ratio | 115.4 | % | 96.4 | % | 19.0 | % | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Ceded premiums written - Casualty and Specialty | $ | 357,129 | $ | 351,217 | $ | 5,912 | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands, except percentages) | |||||||||||||
Profit commissions and fees | $ | 17,937 | $ | 19,900 | $ | (1,963 | ) | ||||||
Decrease in underwriting expense ratio | 3.1 | % | 3.9 | % | (0.8 | )% | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Fixed maturity investments | $ | 133,080 | $ | 122,056 | $ | 11,024 | |||||||
Short term investments | 7,476 | 3,401 | 4,075 | ||||||||||
Equity investments trading | 2,630 | 3,325 | (695 | ) | |||||||||
Other investments | |||||||||||||
Private equity investments | 20,784 | (430 | ) | 21,214 | |||||||||
Other | (4,520 | ) | 17,109 | (21,629 | ) | ||||||||
Cash and cash equivalents | 836 | 584 | 252 | ||||||||||
160,286 | 146,045 | 14,241 | |||||||||||
Investment expenses | (11,541 | ) | (11,635 | ) | 94 | ||||||||
Net investment income | $ | 148,745 | $ | 134,410 | $ | 14,335 | |||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Gross realized gains | $ | 43,053 | $ | 60,794 | $ | (17,741 | ) | ||||||
Gross realized losses | (29,902 | ) | (25,832 | ) | (4,070 | ) | |||||||
Net realized gains on fixed maturity investments | 13,151 | 34,962 | (21,811 | ) | |||||||||
Net unrealized gains on fixed maturity investments trading | 48,940 | 125,501 | (76,561 | ) | |||||||||
Net realized and unrealized losses on investments-related derivatives | (4,344 | ) | (26,873 | ) | 22,529 | ||||||||
Net realized gains on equity investments trading | 49,736 | 14,038 | 35,698 | ||||||||||
Net unrealized gains on equity investments trading | 36,055 | 43,667 | (7,612 | ) | |||||||||
Net realized and unrealized gains on investments | $ | 143,538 | $ | 191,295 | $ | (47,757 | ) | ||||||
• | net realized and unrealized gains on our fixed maturity investments trading of $62.1 million in the first nine months of 2017, compared to gains of $160.5 million in the first nine months of 2016. The $98.4 million decrease was principally driven by lower unrealized gains driven by the flattening of the yield curve during the first nine months of 2017, compared to the first nine months of 2016 which experienced a pronounced downward shift in the yield curve; |
• | net realized and unrealized gains on equity investments trading of $85.8 million in the first nine months of 2017, compared to net realized and unrealized gains of $57.7 million in the first nine months of 2016, an improvement of $28.1 million, principally driven by the strong performance of a number of our equity positions in the first nine months of 2017; and |
• | net realized and unrealized losses on certain investments-related derivatives of $4.3 million in the first nine months of 2017, compared to losses of $26.9 million in the first nine months of 2016, an improvement of $22.5 million, primarily due to the yield curve movements noted above. |
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Foreign exchange gains (losses) | $ | 11,118 | $ | (8,368 | ) | $ | 19,486 | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Top Layer Re | $ | 7,864 | $ | (10,283 | ) | $ | 18,147 | ||||||
Tower Hill Companies | (1,235 | ) | 7,519 | (8,754 | ) | ||||||||
Other | (799 | ) | (1,233 | ) | 434 | ||||||||
Total equity in earnings (losses) of other ventures | $ | 5,830 | $ | (3,997 | ) | $ | 9,827 | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Assumed and ceded reinsurance contracts accounted for as derivatives and deposits | $ | 7,425 | $ | 9,526 | (2,101 | ) | |||||||
Other | (372 | ) | (525 | ) | 153 | ||||||||
Total other income | $ | 7,053 | $ | 9,001 | $ | (1,948 | ) | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Corporate expenses | $ | 14,335 | $ | 25,514 | $ | (11,179 | ) | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Income tax benefit (expense) | $ | 14,739 | $ | (8,040 | ) | $ | 22,779 | ||||||
Nine months ended September 30, | 2017 | 2016 | Change | ||||||||||
(in thousands) | |||||||||||||
Net loss (income) attributable to redeemable noncontrolling interests | $ | 132,338 | $ | (110,867 | ) | $ | 243,205 | ||||||
Nine months ended September 30, | 2017 | 2016 | |||||||
(in thousands) | |||||||||
Net cash provided by operating activities | $ | 621,702 | $ | 380,365 | |||||
Net cash (used in) provided by investing activities | (214,857 | ) | 25,728 | ||||||
Net cash used in financing activities | (256,022 | ) | (420,964 | ) | |||||
Effect of exchange rate changes on foreign currency cash | 9,596 | 1,316 | |||||||
Net increase (decrease) in cash and cash equivalents | 160,419 | (13,555 | ) | ||||||
Cash and cash equivalents, beginning of period | 421,157 | 506,885 | |||||||
Cash and cash equivalents, end of period | $ | 581,576 | $ | 493,330 | |||||
• | an increase in our reserve for claims and claim expenses of $2.3 billion as a result of claims and claims expenses incurred of $2.9 billion, partially offset by claims payments of $613.3 million, each largely driven by the Q3 2017 Large Loss Events; |
• | an increase in unearned premiums of $481.5 million due to the timing of renewals and a $360.5 million increase in reinsurance balances payable due to the timing of payments of our premiums ceded; |
• | a corresponding increase of $1.3 billion in our reinsurance recoverable given the increase in net claims and claim expenses noted above and recoverables associated with the Q3 2017 Large Loss Events; |
• | decreases in premiums receivable and deferred acquisition costs of $533.9 million and $99.6 million, respectively, due to the timing of payments of our gross premiums written and amortization of of deferred acquisition costs, respectively; and |
• | an increase of $194.5 million in our prepaid reinsurance premiums due to ceded premiums written associated renewals in the first nine months of 2017. |
• | the repayment in full at maturity of the aggregate principal amount of $250.0 million of our Series B 7.50% Senior Notes due 2017 assumed in connection with the acquisition of Platinum and originally issued by Platinum Underwriters Finance, Inc.; |
• | the settlement of $188.6 million of common share repurchases; |
• | dividends paid on our common and preferred shares of $38.6 million and $16.8 million, respectively; and |
• | net outflows of $44.2 million related to a net return of capital to third-party shareholders, principally in DaVinciRe and Medici; partially offset by |
• | net inflows of $295.9 million associated with the issuance of $300.0 million of our 3.450% Senior Notes due July 1, 2027, net of underwriting discount. |
• | an increase in premiums receivable and deferred acquisition costs of $403.3 million and $152.5 million, respectively, due to the increase in our gross premiums written; |
• | an increase of $280.8 million in our prepaid reinsurance premiums due to the increase in our gross premiums ceded; |
• | an increase of $106.2 million in our reinsurance recoverable; |
• | an increase in unearned premiums of $545.0 million due to an increase in our gross premiums written and a $250.7 million increase in reinsurance balances payable due to the timing of payments of our gross premiums ceded; and |
• | an increase in our reserve for claims and claim expenses of $94.1 million as a result of claims and claims expenses incurred of $540.7 million, partially offset by claims payments of $446.6 million. |
At September 30, 2017 | At December 31, 2016 | Change | |||||||||||
(in thousands) | |||||||||||||
Common shareholders’ equity | $ | 4,003,012 | $ | 4,466,577 | $ | (463,565 | ) | ||||||
Preference shares | 400,000 | 400,000 | — | ||||||||||
Total shareholders’ equity attributable to RenaissanceRe | 4,403,012 | 4,866,577 | (463,565 | ) | |||||||||
3.450% Senior Notes due 2027 | 295,179 | — | 295,179 | ||||||||||
3.700% Senior Notes due 2025 | 297,225 | 296,948 | 277 | ||||||||||
5.75% Senior Notes due 2020 | 249,188 | 248,941 | 247 | ||||||||||
Series B 7.50% Senior Notes due 2017 | — | 255,352 | (255,352 | ) | |||||||||
4.750% Senior Notes due 2025 (DaVinciRe) (1) | 147,653 | 147,422 | 231 | ||||||||||
RenaissanceRe revolving credit facility – unborrowed | 250,000 | 250,000 | — | ||||||||||
Total debt | $ | 1,239,245 | $ | 1,198,663 | $ | 40,582 | |||||||
Total shareholders’ equity attributable to RenaissanceRe and debt | $ | 5,642,257 | $ | 6,065,240 | $ | (422,983 | ) | ||||||
(1) | RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinciRe. Because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinciRe and RenaissanceRe’s financial exposure to DaVinciRe is limited to its investment in DaVinciRe’s shares and counterparty credit risk arising from reinsurance transactions. |
• | our comprehensive loss attributable to RenaissanceRe of $225.5 million; |
• | our repurchase of 1.3 million shares in open market transactions at an aggregate cost of $188.6 million, and at an average share price of $142.67; and |
• | $38.6 million and $16.8 million of dividends on our common and preference shares, respectively. |
At September 30, 2017 | Issued or Drawn | ||||
RenaissanceRe Revolving Credit Facility | $ | — | |||
Uncommitted Standby Letter of Credit Facility with Wells Fargo | 99,168 | ||||
Uncommitted Standby Letter of Credit Facility with NAB | 4,356 | ||||
Bilateral Letter of Credit Facility with Citibank Europe | 192,715 | ||||
Funds at Lloyd’s Letter of Credit Facilities | |||||
Renaissance Reinsurance FAL Facility | 180,000 | ||||
Total credit facilities in U.S. dollars | $ | 476,239 | |||
Funds at Lloyd’s Letter of Credit Facilities | |||||
Specialty Risks FAL Facility | £ | 10,000 | |||
Total credit facilities in pound sterling | £ | 10,000 | |||
A.M. Best | S&P | Moody’s | Fitch | ||||||
Renaissance Reinsurance (1) | A+ | AA- | A1 | A+ | |||||
DaVinci (1) | A | AA- | A3 | — | |||||
Renaissance Reinsurance U.S. (1) | A | AA- | — | — | |||||
RenaissanceRe Specialty U.S. (1) | A | AA- | — | — | |||||
Renaissance Reinsurance of Europe (1) | A+ | AA- | — | — | |||||
Top Layer Re (1) | A+ | AA | — | — | |||||
Syndicate 1458 | — | — | — | — | |||||
Lloyd’s Overall Market Rating (2) | A | A+ | — | AA- | |||||
RenaissanceRe (3) | — | Very Strong | — | — | |||||
September 30, 2017 | December 31, 2016 | Change | |||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
U.S. treasuries | $ | 2,956,952 | 30.7 | % | $ | 2,617,894 | 28.1 | % | $ | 339,058 | |||||||||
Agencies | 41,109 | 0.5 | % | 90,972 | 1.0 | % | (49,863 | ) | |||||||||||
Municipal | 521,220 | 5.4 | % | 519,069 | 5.6 | % | 2,151 | ||||||||||||
Non-U.S. government (Sovereign debt) | 177,855 | 1.8 | % | 333,224 | 3.6 | % | (155,369 | ) | |||||||||||
Non-U.S. government-backed corporate | 121,892 | 1.3 | % | 133,300 | 1.4 | % | (11,408 | ) | |||||||||||
Corporate | 2,028,750 | 21.0 | % | 1,877,243 | 20.2 | % | 151,507 | ||||||||||||
Agency mortgage-backed | 499,310 | 5.2 | % | 462,493 | 5.0 | % | 36,817 | ||||||||||||
Non-agency mortgage-backed | 299,530 | 3.1 | % | 258,944 | 2.7 | % | 40,586 | ||||||||||||
Commercial mortgage-backed | 263,029 | 2.7 | % | 409,747 | 4.4 | % | (146,718 | ) | |||||||||||
Asset-backed | 183,322 | 1.9 | % | 188,358 | 2.0 | % | (5,036 | ) | |||||||||||
Total fixed maturity investments, at fair value | 7,092,969 | 73.6 | % | 6,891,244 | 74.0 | % | 201,725 | ||||||||||||
Short term investments, at fair value | 1,497,262 | 15.5 | % | 1,368,379 | 14.7 | % | 128,883 | ||||||||||||
Equity investments trading, at fair value | 402,035 | 4.2 | % | 383,313 | 4.1 | % | 18,722 | ||||||||||||
Other investments, at fair value | 548,492 | 5.6 | % | 549,805 | 5.9 | % | (1,313 | ) | |||||||||||
Total managed investment portfolio | 9,540,758 | 98.9 | % | 9,192,741 | 98.7 | % | 348,017 | ||||||||||||
Investments in other ventures, under equity method | 101,420 | 1.1 | % | 124,227 | 1.3 | % | (22,807 | ) | |||||||||||
Total investments | $ | 9,642,178 | 100.0 | % | $ | 9,316,968 | 100.0 | % | $ | 325,210 | |||||||||
September 30, 2017 | December 31, 2016 | Change | |||||||||||
(in thousands) | |||||||||||||
Catastrophe bonds | $ | 332,044 | $ | 335,209 | $ | (3,165 | ) | ||||||
Private equity partnerships | 196,280 | 191,061 | 5,219 | ||||||||||
Senior secured bank loan funds | 19,572 | 22,040 | (2,468 | ) | |||||||||
Hedge funds | 596 | 1,495 | (899 | ) | |||||||||
Total other investments | $ | 548,492 | $ | 549,805 | $ | (1,313 | ) | ||||||
Total shares purchased | Other shares purchased | Shares purchased under publicly announced repurchase program | Dollar maximum amount still available under repurchase program | |||||||||||||||||||||||
Shares purchased | Average price per share | Shares purchased | Average price per share | Shares purchased | Average price per share | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Beginning dollar amount available to be repurchased | $ | 485,145 | ||||||||||||||||||||||||
July 1 - 31, 2017 | 24,828 | $ | 141.86 | 2,128 | $ | 139.05 | 22,700 | $ | 142.12 | (3,226 | ) | |||||||||||||||
August 1 - 2, 2017 | 20,602 | $ | 147.85 | — | $ | — | 20,602 | $ | 147.85 | (3,046 | ) | |||||||||||||||
August 2, 2017 - renewal of authorized share repurchase program of $500.0 million | 21,127 | |||||||||||||||||||||||||
Dollar amount available to be repurchased | 500,000 | |||||||||||||||||||||||||
August 3 - 31, 2017 | 187,532 | $ | 145.77 | 2,456 | $ | 148.25 | 185,076 | $ | 145.74 | (26,973 | ) | |||||||||||||||
September 1 - 30, 2017 | 41,955 | $ | 135.53 | — | $ | — | 41,955 | $ | 135.53 | (5,686 | ) | |||||||||||||||
Total | 274,917 | $ | 144.01 | 4,584 | $ | 143.98 | 270,333 | $ | 144.01 | $ | 467,341 | |||||||||||||||
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
Date: November 1, 2017 | /s/ Robert Qutub |
Date: November 1, 2017 | /s/ James C. Fraser |
1. | I have reviewed this Form 10-Q of RenaissanceRe Holdings Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 1, 2017 | /s/ Kevin J. O'Donnell | |
Kevin J. O'Donnell | |||
Chief Executive Officer |
1. | I have reviewed this Form 10-Q of RenaissanceRe Holdings Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 1, 2017 | /s/ Robert Qutub | |
Robert Qutub | |||
Chief Financial Officer |
/s/ Kevin J. O'Donnell | |
Kevin J. O'Donnell | |
Chief Executive Officer | |
November 1, 2017 |
/s/ Robert Qutub | |
Robert Qutub | |
Chief Financial Officer | |
November 1, 2017 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 27, 2017 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | RENAISSANCERE HOLDINGS LTD. | |
Trading Symbol | RNR | |
Entity Central Index Key | 0000913144 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 40,029,116 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Fixed maturity investments trading, amortized cost | $ 7,061,487 | $ 6,920,690 |
Preference shares, Par value (In dollars per share) | $ 1 | $ 1 |
Preference shares, Shares issued (In shares) | 16,000,000 | 16,000,000 |
Preference shares, Shares outstanding (In shares) | 16,000,000 | 16,000,000 |
Common shares, Par value (In dollars per share) | $ 1 | $ 1 |
Common shares, Shares issued (In shares) | 40,029,116 | 41,187,413 |
Common shares, Shares outstanding (In shares) | 40,029,116 | 41,187,413 |
Consolidated Statements Of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Revenues | ||||
Gross premiums written | $ 640,269 | $ 430,224 | $ 2,389,774 | $ 2,051,485 |
Net premiums written | 483,221 | 284,222 | 1,583,102 | 1,315,813 |
Decrease (increase) in unearned premiums | 64,571 | 62,299 | (287,000) | (264,284) |
Net premiums earned | 547,792 | 346,521 | 1,296,102 | 1,051,529 |
Net investment income | 40,257 | 51,423 | 148,745 | 134,410 |
Net foreign exchange (losses) gains | (156) | (5,986) | 11,118 | (8,368) |
Equity in earnings (losses) of other ventures | 1,794 | (11,630) | 5,830 | (3,997) |
Other income | 2,996 | 2,268 | 7,053 | 9,001 |
Net realized and unrealized gains on investments | 42,052 | 59,870 | 143,538 | 191,295 |
Total revenues | 634,735 | 442,466 | 1,612,386 | 1,373,870 |
Expenses | ||||
Net claims and claim expenses incurred | 1,221,696 | 112,575 | 1,557,364 | 406,930 |
Acquisition expenses | 76,761 | 80,580 | 248,294 | 215,177 |
Operational expenses | 42,537 | 40,493 | 131,586 | 147,801 |
Corporate expenses | 4,413 | 11,537 | 14,335 | 25,514 |
Interest expense | 11,799 | 10,536 | 32,416 | 31,610 |
Total expenses | 1,357,206 | 255,721 | 1,983,995 | 827,032 |
(Loss) income before taxes | (722,471) | 186,745 | (371,609) | 546,838 |
Income tax benefit (expense) | 18,977 | 1,316 | 14,739 | (8,040) |
Net (loss) income | (703,494) | 188,061 | (356,870) | 538,798 |
Net loss (income) attributable to redeemable noncontrolling interests | 204,277 | (35,641) | 132,338 | (110,867) |
Net (loss) income attributable to RenaissanceRe | (499,217) | 152,420 | (224,532) | 427,931 |
Dividends on preference shares | (5,595) | (5,595) | (16,786) | (16,786) |
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ (504,812) | $ 146,825 | $ (241,318) | $ 411,145 |
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ (12.75) | $ 3.58 | $ (6.04) | $ 9.77 |
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | (12.75) | 3.56 | (6.04) | 9.71 |
Dividends per common share (in dollars per share) | $ 0.32 | $ 0.31 | $ 0.96 | $ 0.93 |
Consolidated Statements Of Comprehensive (Loss) Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Comprehensive (loss) income | ||||
Net (loss) income | $ (703,494) | $ 188,061 | $ (356,870) | $ 538,798 |
Change in net unrealized gains on investments | 300 | 284 | (972) | 513 |
Comprehensive (loss) income | (703,194) | 188,345 | (357,842) | 539,311 |
Net loss (income) attributable to redeemable noncontrolling interests | 204,277 | (35,641) | 132,338 | (110,867) |
Comprehensive loss (income) attributable to redeemable noncontrolling interests | 204,277 | (35,641) | 132,338 | (110,867) |
Comprehensive (loss) income attributable to RenaissanceRe | $ (498,917) | $ 152,704 | $ (225,504) | $ 428,444 |
Organization |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||
Organization | ORGANIZATION This report on Form 10-Q should be read in conjunction with the RenaissanceRe’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended December 31, 2016. RenaissanceRe was formed under the laws of Bermuda on June 7, 1993 and is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. Together with its wholly owned and majority-owned subsidiaries and DaVinciRe (as defined below), the Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. The Company has offices in Bermuda, Ireland, Singapore, the United Kingdom, and the United States.
|
Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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, 2016, except as noted below. BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States (“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 presentation 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 recoverables, including allowances for reinsurance recoverables deemed uncollectible; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; and the Company’s deferred tax valuation allowance. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 was issued to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and the classification of taxes paid on the statements of cash flows. ASU 2016-09 became effective for the Company in annual and interim periods beginning after December 15, 2016. The cumulative effect of the adoption of ASU 2016-09 was a $2.2 million increase to opening retained earnings as of January 1, 2017. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 will be effective for public business entities in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. ASU 2014-09 notably excludes the accounting for insurance contracts, leases, financial instruments and guarantees. The Company is currently evaluating the impact of this guidance, with its implementation efforts primarily focused on other income (loss) on its consolidated statements of operations. The adoption of ASU 2014-09 is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous guidance. ASU 2016-02 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and clarifies that the reporting organization should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the organization’s other deferred tax assets. ASU 2016-01 is effective for public business entities in annual and interim periods beginning after December 15, 2017. Earlier adoption is generally not permitted, except for certain specific provisions of ASU 2016-01. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 modifies the recognition of credit losses by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is applicable to financial assets such as loans, debt securities, trade receivables, off-balance sheet credit exposures, reinsurance receivables, and other financial assets that have the contractual right to receive cash. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company's invested assets are measured at fair value through net income, and therefore those invested assets would not be impacted by the adoption of ASU 2016-13. The Company has other financial assets, such as reinsurance recoverables, that could be impacted by the adoption of ASU 2016-13. ASU 2016-13 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) settlement and payment of zero coupon debt instruments, (2) contingent consideration, (3) proceeds from settlement of insurance claims, (4) proceeds from settlement of corporate and bank owned life insurance policies, (5) distributions from equity method investees, (6) cash receipts from beneficial interests obtained by a transferor, and (7) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of cash flows. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfers occur; this is a change from current guidance which prohibits the recognition of current and deferred income taxes until the underlying assets have been sold to outside entities. ASU 2016-16 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). Among other things, ASU 2017-04 requires the following: (1) the elimination of step 2 of the goodwill impairment test; entities will no longer utilize the implied fair value of their assets and liabilities for purposes of testing goodwill for impairment, (2) the quantitative portion of the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount; an impairment charge is to be recognized for the excess of carrying amount over fair value, but only to the extent of the amount of goodwill allocated to that reporting unit, and (3) foreign currency translation adjustments are not to be allocated to a reporting unit from an entity’s accumulated other comprehensive income; the reporting unit’s carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual periods, or any interim goodwill impairment tests in annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. |
Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Fixed Maturity Investments Trading The following table summarizes the fair value of fixed maturity investments trading:
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.
Equity Investments Trading The following table summarizes the fair value of equity investments trading:
Pledged Investments At September 30, 2017, $3.3 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 (December 31, 2016 - $2.7 billion). Of this amount, $1.4 billion is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities (December 31, 2016 - $842.6 million). Reverse Repurchase Agreements At September 30, 2017, the Company held $477.5 million (December 31, 2016 - $78.7 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 at a minimum amount of 102% of the loan principal. Upon maturity, the Company receives principal and interest income. Net Investment Income The components of net investment income are as follows:
Net Realized and Unrealized Gains on Investments Net realized and unrealized gains on investments are as follows:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 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 to be 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 and losses arising from changes in fair value in its consolidated statements of operations. FASB ASC Topic Fair Value Measurements and Disclosures 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:
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 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:
Level 1 and Level 2 Assets and Liabilities Measured at Fair Value Fixed Maturity Investments Fixed maturity investments included in Level 1 consist of the Company’s investments in U.S. treasuries. Fixed maturity investments included in Level 2 are agencies, municipal, non-U.S. government, non-U.S. government-backed corporate, corporate, agency mortgage-backed, non-agency mortgage-backed, commercial mortgage-backed and asset-backed. The Company’s fixed maturity investments are primarily priced using pricing services, such as index providers and pricing vendors, as well as broker quotations. In general, the pricing vendors provide pricing for a high volume of liquid securities that are actively traded. For securities that do not trade on an exchange, the pricing services generally utilize market data and other observable inputs in matrix pricing models to determine month end prices. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids, offers, reference data and industry and economic events. Index pricing generally relies on market traders as the primary source for pricing; however, models are also utilized to provide prices for all index eligible securities. The models use a variety of observable inputs such as benchmark yields, transactional data, dealer runs, broker-dealer quotes and corporate actions. Prices are generally verified using third-party data. Securities which are priced by an index provider are generally included in the index. In general, broker-dealers value securities through their trading desks based on observable inputs. The methodologies include mapping securities based on trade data, bids or offers, observed spreads, and performance on newly issued securities. Broker-dealers also determine valuations by observing secondary trading of similar securities. Prices obtained from broker quotations are considered non-binding, however they are based on observable inputs and by observing secondary trading of similar securities obtained from active, non-distressed markets. The Company considers these Level 2 inputs as they are corroborated with other market observable inputs. The techniques generally used to determine the fair value of the Company’s fixed maturity investments are detailed below by asset class. U.S. treasuries Level 1 - At September 30, 2017, the Company’s U.S. treasuries fixed maturity investments were primarily priced by pricing services and had a weighted average effective yield of 1.6% and a weighted average credit quality of AA (December 31, 2016 - 1.4% and AA, respectively). When pricing these securities, the pricing services utilize daily data from many real time market sources, including active broker dealers. Certain data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source is used for each issue and maturity date. Agencies Level 2 - At September 30, 2017, the Company’s agency fixed maturity investments had a weighted average effective yield of 1.6% and a weighted average credit quality of AA (December 31, 2016 - 2.0% and AA, respectively). The issuers of the Company’s agency fixed maturity investments primarily consist of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Fixed maturity investments included in agencies are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The fair value of each security is individually computed using analytical models which incorporate option adjusted spreads and other daily interest rate data. Municipal Level 2 - At September 30, 2017, the Company’s municipal fixed maturity investments had a weighted average effective yield of 1.9% and a weighted average credit quality of AA (December 31, 2016 - 2.4% and AA, respectively). The Company’s municipal fixed maturity investments are primarily priced by pricing services. When evaluating these securities, the pricing services gather information regarding the security from third-party sources such as trustees, paying agents or issuers. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk. In certain instances, securities are individually evaluated using a spread over widely accepted market benchmarks. Non-U.S. government (Sovereign debt) Level 2 - At September 30, 2017, the Company’s non-U.S. government fixed maturity investments had a weighted average effective yield of 1.7% and a weighted average credit quality of AAA (December 31, 2016 - 1.6% and AAA, respectively). The issuers of securities in this sector are non-U.S. governments and their respective agencies as well as supranational organizations. Securities held in these sectors are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Non-U.S. government-backed corporate Level 2 - At September 30, 2017, the Company’s non-U.S. government-backed corporate fixed maturity investments had a weighted average effective yield of 1.9% and a weighted average credit quality of AA (December 31, 2016 - 1.5% and AAA, respectively). Non-U.S. government-backed fixed maturity investments are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread to the respective curve for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Corporate Level 2 - At September 30, 2017, the Company’s corporate fixed maturity investments principally consisted of U.S. and international corporations and had a weighted average effective yield of 3.5% and a weighted average credit quality of BBB (December 31, 2016 - 3.7% and BBB, respectively). The Company’s corporate fixed maturity investments are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk. In certain instances, securities are individually evaluated using a spread which is added to the U.S. treasury curve or a security specific swap curve as appropriate. Agency mortgage-backed Level 2 - At September 30, 2017, the Company’s agency mortgage-backed fixed maturity investments included agency residential mortgage-backed securities with a weighted average effective yield of 2.9%, a weighted average credit quality of AA and a weighted average life of 6.3 years (December 31, 2016 - 2.9%, AA and 6.9 years, respectively). The Company’s agency mortgage-backed fixed maturity investments are primarily priced by pricing services using a mortgage pool specific model which utilizes daily inputs from the active to be announced market which is very liquid, as well as the U.S. treasury market. The model also utilizes additional information, such as the weighted average maturity, weighted average coupon and other available pool level data which is provided by the sponsoring agency. Valuations are also corroborated with daily active market quotes. Non-agency mortgage-backed Level 2 - The Company’s non-agency mortgage-backed fixed maturity investments include non-agency prime residential mortgage-backed and non-agency Alt-A fixed maturity investments. The Company has no fixed maturity investments that were classified as sub-prime at the time of purchase held in its fixed maturity investments portfolio. At September 30, 2017, the Company’s non-agency prime residential mortgage-backed fixed maturity investments had a weighted average effective yield of 3.8%, a weighted average credit quality of non-investment grade, and a weighted average life of 5.0 years (December 31, 2016 - 4.3%, BBB and 5.1 years, respectively). The Company’s non-agency Alt-A fixed maturity investments held at September 30, 2017 had a weighted average effective yield of 3.7%, a weighted average credit quality of non-investment grade and a weighted average life of 6.2 years (December 31, 2016 - 5.2%, non-investment grade and 6.0 years, respectively). Securities held in these sectors are primarily priced by pricing services using an option adjusted spread model or other relevant models, which principally utilize inputs including benchmark yields, available trade information or broker quotes, and issuer spreads. The pricing services also review collateral prepayment speeds, loss severity and delinquencies among other collateral performance indicators for the securities valuation, when applicable. Commercial mortgage-backed Level 2 - At September 30, 2017, the Company’s commercial mortgage-backed fixed maturity investments had a weighted average effective yield of 3.1%, a weighted average credit quality of AAA, and a weighted average life of 4.5 years (December 31, 2016 - 2.6%, AAA and 3.9 years, respectively). Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services discount the expected cash flows for each security held in this sector using a spread adjusted benchmark yield based on the characteristics of the security. Asset-backed Level 2 - At September 30, 2017, the Company’s asset-backed fixed maturity investments had a weighted average effective yield of 2.4%, a weighted average credit quality of AAA and a weighted average life of 2.8 years (December 31, 2016 - 2.3%, AAA and 2.6 years, respectively). The underlying collateral for the Company’s asset-backed fixed maturity investments primarily consists of bank loans, student loans, credit card receivables, auto loans and other receivables. Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services determine the expected cash flows for each security held in this sector using historical prepayment and default projections for the underlying collateral and current market data. In addition, a spread is applied to the relevant benchmark and used to discount the cash flows noted above to determine the fair value of the securities held in this sector. Short Term Investments Level 2 - At September 30, 2017, the Company’s short term investments had a weighted average effective yield of 1.1% and a weighted average credit quality of AAA (December 31, 2016 - 0.7% and AAA, respectively). The fair value of the Company’s portfolio of short term investments is generally determined using amortized cost which approximates fair value and, in certain cases, in a manner similar to the Company’s fixed maturity investments noted above. Equity Investments, Classified as Trading Level 1 - The fair value of the Company’s portfolio of equity investments, classified as trading is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period. When pricing these securities, the pricing services utilize daily data from many real time market sources, including applicable securities exchanges. All data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source was used for each security. Other investments Catastrophe bonds Level 2 - The Company’s other investments include investments in catastrophe bonds which are recorded at fair value based on broker or underwriter bid indications. Other assets and liabilities Derivatives Level 1 and Level 2 - Other assets and liabilities include certain derivatives entered into by the Company. The fair value of these transactions includes certain exchange traded futures contracts which are considered Level 1, and foreign currency contracts and certain credit derivatives, determined using standard industry valuation models and considered Level 2, as the inputs to the valuation model are based on observable market inputs. For credit derivatives, these inputs include credit spreads, credit ratings of the underlying referenced security, the risk free rate and the contract term. For foreign currency contracts, these inputs include spot rates and interest rate curves. Other Level 2 - The liabilities measured at fair value and included in Level 2 at September 30, 2017 of $8.8 million are comprised of cash settled restricted stock units (“CSRSU”) that form part of the Company’s compensation program. The fair value of the Company’s CSRSUs is determined using observable exchange traded prices for the Company’s common shares. Level 3 Assets and Liabilities Measured at Fair Value Below is a summary of quantitative information regarding the significant observable and unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis:
Fixed Maturity Investments Corporate Level 3 - Previously, the Company’s corporate fixed maturity investments included an investment in the preferred equity of an insurance holding company. The Company measured the fair value of this investment using a discounted cash flow model and ultimately sold this investment during the year ended December 31, 2016. Other assets and liabilities Assumed and ceded (re)insurance contracts Level 3 - At September 30, 2017, the Company had a $0.6 million net asset related to an assumed reinsurance contract accounted for at fair value, with the fair value obtained through the use of an internal valuation model. The inputs to the internal valuation model are principally based on indicative pricing obtained from independent brokers and pricing vendors for similarly structured marketable securities. The most significant unobservable inputs include prices for similar marketable securities and a liquidity premium. The Company considers the prices for similar securities to be unobservable, as there is little, if any market activity for these similar assets. In addition, the Company has estimated a liquidity premium that would be required if the Company attempted to effectively exit its position by executing a short sale of these securities. Generally, an increase in the prices for similar marketable securities or a decrease in the liquidity premium would result in an increase in the expected profit and ultimate fair value of this assumed reinsurance contract. Level 3 - At September 30, 2017, the Company had a $4.1 million net liability related to assumed and ceded (re)insurance contracts accounted for at fair value, with the fair value obtained through the use of an internal valuation model. The inputs to the internal valuation model are principally based on proprietary data as observable market inputs are generally not available. The most significant unobservable inputs include the assumed and ceded expected net cash flows related to the contracts, including the expected premium, acquisition expenses and losses; the expected loss ratio and the relevant discount rate used to present value the net cash flows. The contract period and acquisition expense ratio are considered observable input as each is defined in the contract. The negative acquisition expense ratio used to determine the fair value of the contracts at September 30, 2017 is the result of override commissions on the contracts being higher than the gross acquisition expenses. Generally, an increase in the net expected cash flows and expected term of the contract and a decrease in the discount rate, expected loss ratio or acquisition expense ratio, would result in an increase in the expected profit and ultimate fair value of these assumed and ceded (re)insurance contracts. Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Interest and dividend income are included in net investment income and are excluded from the reconciliation.
Financial Instruments Disclosed, But Not Carried, at Fair Value The Company uses various financial instruments in the normal course of its business. The Company’s insurance contracts are excluded from the fair value of financial instruments accounting guidance, unless the Company elects the fair value option, and therefore, are not included in the amounts discussed herein. The carrying values of cash and cash equivalents, accrued investment income, receivables for investments sold, certain other assets, payables for investments purchased, certain other liabilities, and other financial instruments not included herein approximated their fair values. Debt Included on the Company’s consolidated balance sheet at September 30, 2017 were debt obligations of $989.2 million (December 31, 2016 - $948.7 million). At September 30, 2017, the fair value of the Company’s debt obligations was $1,034.2 million (December 31, 2016 – $964.8 million). The fair value of the Company’s debt obligations is determined using indicative market pricing obtained from third-party service providers, which the Company considers Level 2 in the fair value hierarchy. There have been no changes during the period in the Company’s valuation technique used to determine the fair value of the Company’s debt obligations. The Fair Value Option for Financial Assets and Financial Liabilities The Company has elected to account for certain financial assets and financial liabilities at fair value using the guidance under FASB ASC Topic Financial Instruments as the Company believes it represents the most meaningful measurement basis for these assets and liabilities. Below is a summary of the balances the Company has elected to account for at fair value:
Included in net investment income for the three and nine months ended September 30, 2017 were net unrealized losses of $9.8 million and gains of $2.7 million related to the changes in fair value of other investments (2016 – gains of $9.4 million and $6.1 million). Included in other income for the three and nine months ended September 30, 2017 were net unrealized gains of $Nil and $Nil related to the changes in the fair value of other assets and liabilities (2016 - $Nil and $Nil). Measuring the Fair Value of Other Investments Using Net Asset Valuations The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient:
Private equity partnerships – The Company’s investments in private equity partnerships included alternative asset limited partnerships (or similar corporate structures) that invest in certain private equity asset classes, including U.S. and global leveraged buyouts, mezzanine investments, distressed securities, real estate, and oil, gas and power. The Company generally has no right to redeem its interest in any of these private equity partnerships in advance of dissolution of the applicable private equity partnership. Instead, the nature of these investments is that distributions are received by the Company in connection with the liquidation of the underlying assets of the respective private equity partnership. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 7 to 10 years from inception of the respective limited partnership. Senior secured bank loan funds – At September 30, 2017, the Company had $19.6 million invested in closed end funds which invest primarily in loans. The Company has no right to redeem its investment in these funds. It is estimated that the majority of the underlying assets in these closed end funds would liquidate over 4 to 5 years from inception of the applicable fund. Hedge funds – The Company invests in hedge funds that pursue multiple strategies. The Company’s investments in hedge funds at September 30, 2017 were $0.6 million of so called “side pocket” investments which are not redeemable at the option of the shareholder. The Company will retain its interest in the side pocket investments until the underlying investments attributable to such side pockets are liquidated, realized or deemed realized at the discretion of the fund manager. |
Reinsurance |
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Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance | REINSURANCE The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company’s ceded reinsurance contracts provide for payments of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to the respective reinsurance contracts. The Company remains liable to the extent that any reinsurance company fails to meet its obligations. The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred:
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Insurance Loss Reserves [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Claims and Claim Expenses | RESERVE FOR CLAIMS AND CLAIM EXPENSES The Company believes the most significant accounting judgment made by management is its estimate of claims and claim expense reserves. Claims and claim expense reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts the Company sells. The Company establishes its claims and claim expense reserves by taking claims reported to the Company by insureds and ceding companies, but which have not yet been paid (“case reserves”), adding estimates for the anticipated cost of claims incurred but not yet reported to the Company, or incurred but not enough reported to the Company (collectively referred to as “IBNR”) and, if deemed necessary, adding costs for additional case reserves which represent the Company’s estimates for claims related to specific contracts previously reported to the Company which it believes may not be adequately estimated by the client as of that date, or adequately covered in the application of IBNR. The following table summarizes the Company’s claims and claim expense reserves by segment, allocated between case reserves, additional case reserves and IBNR:
Activity in the liability for unpaid claims and claim expenses is summarized as follows:
Prior Year Development of the Reserve for Net Claims and Claim Expenses The Company’s estimates of claims and claim expense reserves are not precise in that, among other things, they are based on predictions of future developments and estimates of future trends and other variable factors. Some, but not all, of the Company’s reserves are further subject to the uncertainty inherent in actuarial methodologies and estimates. Because a reserve estimate is simply an insurer’s estimate at a point in time of its ultimate liability, and because there are numerous factors that affect reserves and claims payments that cannot be determined with certainty in advance, the Company’s ultimate payments will vary, perhaps materially, from its estimates of reserves. If the Company determines in a subsequent period that adjustments to its previously established reserves are appropriate, such adjustments are recorded in the period in which they are identified. On a net basis, the Company’s cumulative favorable or unfavorable development is generally reduced by offsetting changes in its reinsurance recoverables, as well as changes to loss related premiums such as reinstatement premiums and redeemable noncontrolling interest for changes in claims and claim expenses that impact DaVinciRe, all of which generally move in the opposite direction to changes in the Company’s ultimate claims and claim expenses. The following table details the Company’s prior year development by segment of its liability for unpaid claims and claim expenses:
Changes to prior year estimated claims reserves decreased the Company’s net loss by $3.7 million during the nine months ended September 30, 2017, (2016 - increased the Company’s net income by $76.6 million), excluding the consideration of changes in reinstatement, adjustment or other premium changes, profit commissions, redeemable noncontrolling interest - DaVinciRe and income tax. Property Segment The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item:
The net favorable development of prior accident years net claims and claim expenses within the Company’s Property segment in the nine months ended September 30, 2017 of $17.0 million was comprised of net adverse development of $2.8 million related to large catastrophe events, net favorable development of $20.6 million related to small catastrophe events and $0.8 million of adverse development associated with actuarial assumption changes. Included in net adverse development of prior accident years net claims and claim expenses from large events was adverse development of $5.8 million related to the 2011 New Zealand Earthquake and $5.0 million related to the 2010 New Zealand Earthquake due to increases in the estimated expected losses associated with these events. Partially offsetting these events was favorable development of $4.2 million and $3.9 million related to the 2011 April and May U.S. Tornadoes and a number of other events, respectively, due to reductions in the estimated ultimate losses associated with these events. Included in net favorable development of prior accident years net claims and claims expenses from small events was a reduction in the estimated ultimate losses associated with the 2016 Fort McMurray Wildfire of $6.4 million and the 2015 Tianjin Explosion of $4.9 million. In addition, the Company’s Property segment experienced net favorable development of $9.3 million associated with a number of other small catastrophe events. The net favorable development of prior accident years net claims and claim expenses within the Company’s Property segment in the nine months ended September 30, 2016 of $37.5 million was principally comprised of net favorable development of $29.5 million associated with small catastrophe events related to lines of business where the Company principally estimates net claims and claim expenses using traditional actuarial methods. In addition, the Company experienced net favorable development of $8.0 million from large catastrophe events due principally to a decrease in the estimated ultimate losses for the 2011 Tohoku Earthquake and the April and May 2011 Tornadoes of $5.9 million and $3.4 million, respectively, and net favorable development of $7.4 million associated with a number of other large catastrophe events. Partially offsetting this net favorable development of large catastrophe events was an increase in the estimated ultimate losses for the 2010 New Zealand Earthquake of $8.7 million. In addition, the Company’s Property segment experienced net favorable development due to reductions in the estimated ultimate losses from the 2015 Tianjin Explosion of $6.2 million and net favorable development of $23.3 million associated with a number of other small catastrophe events. Casualty and Specialty Segment The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Casualty and Specialty segment:
The net adverse development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment in the nine months ended September 30, 2017 of $14.0 million was driven by $33.5 million of adverse development associated with the change in the discount rate used to calculate lump sum awards in U.K. bodily injury cases (the “Ogden Rate”), from 2.5%, to minus 0.75%. Offsetting the adverse development due to the impact of the Ogden Rate change was $17.0 million of net favorable development in the first nine months of 2017 related to actual reported losses coming in lower than expected on attritional net claims and claim expenses across a number of lines of business and $2.5 million of net favorable development associated with actuarial assumption changes. The net favorable development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment in the nine months ended September 30, 2016 of $38.3 million was driven by $32.2 million of favorable development related to actual reported net claims and claim expenses coming in lower than expected on prior accident years events and $6.1 million of favorable development associated with actuarial assumption changes. |
Debt and Credit Facilities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES Except as noted below, there have been no material changes to the Company’s debt and credit facilities as described in its Form 10-K for the year ended December 31, 2016. Debt Obligations A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below:
3.450% Senior Notes due 2027 of RenaissanceRe Finance On June 29, 2017, RenaissanceRe Finance issued $300.0 million of its 3.450% Senior Notes due July 1, 2027, with interest on the notes payable on July 1 and January 1 of each year. The notes are fully and unconditionally guaranteed by RenaissanceRe and may be redeemed by RenaissanceRe Finance prior to maturity, subject to the payment of a “make-whole” premium if the notes are redeemed prior to April 1, 2027. The notes contain various covenants, including limitations on mergers and consolidations, and restrictions as to the disposition of, and the placing of liens on, stock of designated subsidiaries. The net proceeds from the offering of the notes are to be used for general corporate purposes. Series B 7.50% Senior Notes due 2017 of Platinum Underwriters Finance, Inc. On June 1, 2017, the Company repaid in full at maturity an aggregate principal amount of $250.0 million, plus applicable accrued interest, of its Series B 7.50% Senior Notes due 2017 assumed in connection with the acquisition of Platinum and originally issued by Platinum Underwriters Finance, Inc. Credit Facilities The outstanding amounts issued or drawn under each of the Company’s significant credit facilities is set forth below:
Funds at Lloyd’s Letter of Credit Facilities Effective as of May 25, 2017, Renaissance Reinsurance entered into an amendment to its letter of credit facility with Bank of Montreal (“BMO”), Citibank Europe plc, (“CEP”), and ING Bank N.V. (“ING”) as lenders (the “Renaissance Reinsurance FAL Facility”), which provided for the issuance by the lenders of two letters of credit to support business written by Syndicate 1458 with stated amounts of $380.0 million and £90.0 million, respectively. Pursuant to the amendment, the stated amount of the $380.0 million letter of credit was reduced to $180.0 million and the £90.0 million letter of credit was cancelled. In addition, pursuant to the amendment, Renaissance Reinsurance may request that the Renaissance Reinsurance FAL Facility be amended to increase the stated amount of the letter of credit, or issue a new letter or credit denominated in Pounds, in an aggregate amount for all such increases or issuances not to exceed $75.0 million or the equivalent thereof. All other terms and conditions of the Renaissance Reinsurance FAL Facility remained the same. |
Noncontrolling Interests |
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Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests | NONCONTROLLING INTERESTS A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below:
A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations set forth below:
Redeemable Noncontrolling Interest – DaVinciRe In October 2001, the Company formed DaVinciRe and DaVinci with other equity investors. RenaissanceRe owns a noncontrolling economic interest in DaVinciRe; however, because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of the Company. The portion of DaVinciRe’s earnings owned by third parties is recorded in the consolidated statements of operations as net income attributable to redeemable noncontrolling interests. The Company’s noncontrolling economic ownership in DaVinciRe was 23.5% at September 30, 2017 (December 31, 2016 - 24.0%). DaVinciRe shareholders are party to a shareholders agreement which provides DaVinciRe shareholders, excluding RenaissanceRe, with certain redemption rights that enable each shareholder to notify DaVinciRe of such shareholder’s desire for DaVinciRe to repurchase up to half of such shareholder’s initial aggregate number of shares held, subject to certain limitations, such as limiting the aggregate of all share repurchase requests to 25% of DaVinciRe’s capital in any given year and satisfying all applicable regulatory requirements. If total shareholder requests exceed 25% of DaVinciRe’s capital, the number of shares repurchased will be reduced among the requesting shareholders pro-rata, based on the amounts desired to be repurchased. Shareholders desiring to have DaVinci repurchase their shares must notify DaVinciRe before March 1 of each year. The repurchase price will be based on GAAP book value as of the end of the year in which the shareholder notice is given, and the repurchase will be effective as of January 1 of the following year. The repurchase price is generally subject to a true-up for potential development on outstanding loss reserves after settlement of all claims relating to the applicable years. 2016 During January 2016, DaVinciRe redeemed a portion of its outstanding shares from certain existing DaVinciRe shareholders, including RenaissanceRe, while new DaVinciRe shareholders purchased shares in DaVinciRe from RenaissanceRe. The net redemption as a result of these transactions was $100.0 million. In connection with the redemption, DaVinciRe retained a $10.0 million holdback. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 24.0%, effective January 1, 2016. 2017 During January 2017, DaVinciRe redeemed $75.0 million of its outstanding shares from certain existing DaVinciRe shareholders, including RenaissanceRe. In connection with the redemption, DaVinciRe retained a $7.5 million holdback. In addition, RenaissanceRe sold an aggregate of $24.0 million of its shares in DaVinciRe to an existing shareholder and a new shareholder. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 22.6%, effective January 1, 2017. The Company expects its noncontrolling economic ownership in DaVinciRe to fluctuate over time. During July 2017, RenaissanceRe purchased $12.0 million of DaVinciRe’s outstanding shares from an existing third-party shareholder. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 23.5%, effective July 1, 2017. See “Note 16. Subsequent Events” for additional information related to DaVinciRe share transactions subsequent to September 30, 2017. The activity in redeemable noncontrolling interest – DaVinciRe is detailed in the table below:
Redeemable Noncontrolling Interest - RenaissanceRe Medici Fund Ltd. (“Medici”) Medici is an exempted company incorporated under the laws of Bermuda and its objective is to seek to invest substantially all of its assets in various insurance-based investment instruments that have returns primarily tied to property catastrophe risk. RenaissanceRe owns a noncontrolling economic interest in Medici; however, because RenaissanceRe controls all of Medici’s outstanding voting rights, the financial statements of Medici are included in the consolidated financial statements of the Company. The portion of Medici’s earnings owned by third parties is recorded in the consolidated statements of operations as net income attributable to redeemable noncontrolling interests. Any shareholder may redeem all or any portion of its shares as of the last day of any calendar month, upon at least 30 calendar days’ prior irrevocable written notice to Medici. 2016 During 2016, third-party investors subscribed for $79.5 million and redeemed $21.7 million of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 36.5%, effective December 31, 2016. 2017 During the nine months ended September 30, 2017, third-party investors subscribed for $72.7 million and redeemed $27.3 million of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 31.6% at September 30, 2017. The Company expects its noncontrolling economic ownership in Medici to fluctuate over time. The activity in redeemable noncontrolling interest – Medici is detailed in the table below:
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Upsilon RFO Effective January 1, 2013, the Company formed and launched Upsilon RFO, a managed joint venture, and a Bermuda domiciled SPI, to provide additional capacity to the worldwide aggregate and per-occurrence retrocessional property catastrophe excess of loss market. The shareholders (other than the Class A shareholder) participate in substantially all of the profits or losses of Upsilon RFO while their shares remain outstanding. The shareholders (other than the Class A shareholder) indemnify Upsilon RFO against losses relating to insurance risk and therefore these shares have been accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance. Upsilon RFO is considered a VIE as it has insufficient equity capital to finance its activities without additional financial support. The Company is the primary beneficiary of Upsilon RFO as it has the power over the activities that most significantly impact the economic performance of Upsilon RFO and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to Upsilon RFO, in accordance with the accounting guidance. As a result, the Company consolidates Upsilon RFO and all significant inter-company transactions have been eliminated. Other than its equity investment in Upsilon RFO, the Company has not provided financial or other support to Upsilon RFO that it was not contractually required to provide. 2016 During 2016, Upsilon RFO returned $242.5 million of capital to its investors, including $59.8 million to the Company. In addition, during 2016, $166.6 million of Upsilon RFO non-voting preference shares were issued to existing investors therein, including $55.2 million to the Company. At December 31, 2016, the Company’s participation in the risks assumed by Upsilon RFO was 28.8%. 2017 During the nine months ended September 30, 2017, Upsilon RFO returned $84.3 million of capital to its investors, including $33.0 million to the Company. In addition, during the nine months ended September 30, 2017, $134.1 million of Upsilon RFO non-voting preference shares were issued to existing investors therein, including $9.5 million to the Company, and an existing third-party investor purchased $7.5 million of Upsilon RFO non-voting preference shares from the Company. At September 30, 2017, the Company’s participation in the risks assumed by Upsilon RFO was 10.1%. See “Note 16. Subsequent Events” for additional information related to Upsilon RFO’s non-voting preference shares subsequent to September 30, 2017. At September 30, 2017, the Company’s consolidated balance sheet included total assets and total liabilities of Upsilon RFO of $453.8 million and $453.9 million, respectively (December 31, 2016 - $193.0 million and $193.0 million, respectively). Mona Lisa Re Ltd. (“Mona Lisa Re”) On March 14, 2013, Mona Lisa Re was licensed as a Bermuda domiciled special purpose insurer to provide reinsurance capacity to subsidiaries of RenaissanceRe, namely Renaissance Reinsurance and DaVinci, through reinsurance agreements which will be collateralized and funded by Mona Lisa Re through the issuance of one or more series of principal-at-risk variable rate notes to third-party investors. Upon issuance of a series of notes by Mona Lisa Re, all of the proceeds from the issuance were deposited into collateral accounts, separated by series, to fund any potential obligation under the reinsurance agreements entered into with Renaissance Reinsurance and/or DaVinci underlying such series of notes. The outstanding principal amount of each series of notes generally will be returned to holders of such notes upon the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes, in which case the amount returned will be reduced by such noteholder’s pro rata share of such loss, as specified in the applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable quarterly, as determined by the applicable governing documents of each series of notes. The Company concluded that Mona Lisa Re meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company evaluated its relationship with Mona Lisa Re and concluded it does not have a variable interest in Mona Lisa Re. As a result, the financial position and results of operations of Mona Lisa Re are not consolidated by the Company. The Company has not provided financial or other support to Mona Lisa Re that it was not contractually required to provide. At September 30, 2017, the total assets and total liabilities of Mona Lisa Re were $26.1 million and $26.1 million, respectively (December 31, 2016 - $184.2 million and $184.2 million, respectively). The only transactions related to Mona Lisa Re that are recorded in the Company’s consolidated financial statements are the ceded reinsurance agreements entered into by Renaissance Reinsurance and DaVinci which are accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance. Renaissance Reinsurance and DaVinci have together entered into ceded reinsurance contracts with Mona Lisa Re with gross premiums ceded of $0.2 million and $0.2 million, respectively, during the nine months ended September 30, 2017 (2016 - $7.4 million and $5.1 million, respectively). In addition, Renaissance Reinsurance and DaVinci recognized ceded premiums earned related to the ceded reinsurance contracts with Mona Lisa Re of $4.0 million and $2.8 million, respectively, during the nine months ended September 30, 2017 (2016 - $5.4 million and $3.7 million, respectively). Fibonacci Re Effective November 7, 2016, Fibonacci Re, a Bermuda-domiciled SPI, was formed to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Upon issuance of a series of notes by Fibonacci Re, all of the proceeds from the issuance are deposited into collateral accounts, separated by series, to fund any potential obligation under the reinsurance agreements entered into with Renaissance Reinsurance underlying such series of notes. The outstanding principal amount of each series of notes generally will be returned to holders of such notes upon the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes, in which case the amount returned will be reduced by such noteholder’s pro rata share of such loss, as specified in the applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable quarterly, as determined by the applicable governing documents of each series of notes. RUM receives an origination and structuring fee in connection with the formation and operation of Fibonacci Re. The Company concluded that Fibonacci Re meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company evaluated its relationship with Fibonacci Re and concluded it is not the primary beneficiary of Fibonacci Re as it does not have power over the activities that most significantly impact the economic performance of Fibonacci Re. As a result, the Company does not consolidate the financial position or results of operations of Fibonacci Re. The only transactions related to Fibonacci Re that will be recorded in the Company’s consolidated financial statements will be the ceded reinsurance agreements entered into by Renaissance Reinsurance that are accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance, and the fair value of the participating notes owned by the Company. Other than its investment in the participating notes of Fibonacci Re, the Company has not provided financial or other support to Fibonacci Re that it was not contractually required to provide. Effective with the risk periods incepting on January 1, 2017 and June 1, 2017, Fibonacci Re raised $140.0 million and $45.0 million, respectively, of capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. The fair value of the Company’s investment in the participating notes of Fibonacci Re is included in other investments. Net of third-party investors, the fair value of the Company’s investment in Fibonacci Re was $16.3 million at September 30, 2017. Renaissance Reinsurance entered into ceded reinsurance contracts with Fibonacci Re with premiums ceded of $9.4 million during the nine months ended September 30, 2017. In addition, Renaissance Reinsurance recognized ceded premiums earned related to the ceded reinsurance contracts with Fibonacci Re of $6.2 million during the nine months ended September 30, 2017. |
Shareholders' Equity |
9 Months Ended |
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Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Dividends The Board of Directors of RenaissanceRe declared dividends of $0.32 per common share to common shareholders of record on March 15, 2017, June 15, 2017 and September 15, 2017, respectively, and RenaissanceRe paid dividends of $0.32 per common share to common shareholders on March 31, 2017, June 30, 2017 and September 29, 2017, respectively. The Board of Directors approved the payment of quarterly dividends on the Series C 6.08% Preference Shares and Series E 5.375% Preference Shares to preference shareholders of record in the amounts and on the quarterly record dates and dividend payment dates set forth in the prospectus supplement and Certificate of Designation for the applicable series of preference shares, unless and until further action is taken by the Board of Directors. The dividend payment dates for the preference shares will be the first day of March, June, September and December of each year (or if this date is not a business day, on the business day immediately following this date). The record dates for the preference share dividends are one day prior to the dividend payment dates. The amount of the dividend on the Series C 6.08% Preference Shares is an amount per share equal to 6.08% of the liquidation preference per annum (the equivalent to $1.52 per share per annum, or $0.38 per share per quarter). The amount of the dividend on the Series E 5.375% Preference Shares is an amount per share equal to 5.375% of the liquidation preference per annum (the equivalent to $1.34375 per share per annum, or $0.3359375 per share per quarter). During the nine months ended September 30, 2017, the Company paid $16.8 million in preference share dividends (2016 - $16.8 million) and $38.6 million in common share dividends (2016 - $38.9 million). Share Repurchases The Company’s share repurchase program may be effected from time to time, depending on market conditions and other factors, through open market purchases and privately negotiated transactions. On August 2, 2017, RenaissanceRe’s Board of Directors approved a renewal of its authorized share repurchase program for an aggregate amount of up to $500.0 million. Unless terminated earlier by RenaissanceRe’s Board of Directors, the program will expire when the Company has repurchased the full value of the common shares authorized. The Company’s decision to repurchase common shares will depend on, among other matters, the market price of the common shares and the capital requirements of the Company. During the nine months ended September 30, 2017, the Company repurchased an aggregate of 1.3 million common shares in open market transactions at an aggregate cost of $188.6 million and an average price of $142.67 per common share. At September 30, 2017, $467.3 million remained available for repurchase under the share repurchase program. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share:
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Segment Reporting |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | SEGMENT REPORTING The Company’s reportable segments are defined as follows: (1) Property, which is comprised of catastrophe and other property reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit, and (2) Casualty and Specialty, which is comprised of casualty and specialty reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit. In addition to its reportable segments, the Company has an Other category, which primarily includes its strategic investments, investments unit, corporate expenses, capital servicing costs, noncontrolling interests, certain expenses related to the acquisition of Platinum, and the remnants of its former Bermuda-based insurance operations. The Company’s Property segment is managed by the Chief Underwriting Officer - Property and the Casualty and Specialty segment is managed by the Chief Underwriting Officer - Casualty and Specialty. Each of the Chief Underwriting Officer - Property and Chief Underwriting Officer - Casualty and Specialty operate under the direction of the Company’s Group Chief Underwriting Officer, who in turn reports to the Company’s President and Chief Executive Officer. The Company does not manage its assets by segment; accordingly, net investment income and total assets are not allocated to the segments. A summary of the significant components of the Company’s revenues and expenses by segment is as follows:
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Derivative Instruments |
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Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS From time to time, the Company may enter into derivative instruments such as futures, options, swaps, forward contracts and other derivative contracts primarily to manage its foreign currency exposure, obtain exposure to a particular financial market, for yield enhancement, or for trading and speculation. The Company’s derivative instruments are generally traded under International Swaps and Derivatives Association master agreements, which establish the terms of the transactions entered into with the Company’s derivative counterparties. In the event a party becomes insolvent or otherwise defaults on its obligations, a master agreement generally permits the non-defaulting party to accelerate and terminate all outstanding transactions and net the transactions’ marked-to-market values so that a single sum in a single currency will be owed by, or owed to, the non-defaulting party. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions are generally netted by counterparty and are reported accordingly in other assets and other liabilities. The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments:
Refer to “Note 3. Investments” for information on reverse repurchase agreements. The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table:
The Company is not aware of the existence of any credit-risk related contingent features that it believes would be triggered in its derivative instruments that are in a net liability position at September 30, 2017. Interest Rate Derivatives The Company uses interest rate futures and swaps within its portfolio of fixed maturity investments to manage its exposure to interest rate risk, which may result in increasing or decreasing its exposure to this risk. Interest Rate Futures The fair value of interest rate futures is determined using exchange traded prices. At September 30, 2017, the Company had $1.1 billion of notional long positions and $399.7 million of notional short positions of primarily Eurodollar, U.S. treasury and non-U.S. dollar futures contracts (December 31, 2016 - $1.2 billion and $727.9 million, respectively). Interest Rate Swaps During the three months ended September 30, 2017, the Company entered into interest rate swaps. The fair value of interest rate swaps is determined using the relevant exchange traded price where available or a discounted cash flow model based on the terms of the contract and inputs, including, where applicable, observable yield curves. At September 30, 2017, the Company had $51.3 million of notional positions paying a fixed rate and $5.3 million receiving a fixed rate denominated in U.S. dollars. Foreign Currency Derivatives The Company’s functional currency is the U.S. dollar. The Company writes a portion of its business in currencies other than U.S. dollars and may, from time to time, experience foreign exchange gains and losses in the Company’s consolidated financial statements. All changes in exchange rates, with the exception of non-monetary assets and liabilities, are recognized in the Company’s consolidated statements of operations. Underwriting Operations Related Foreign Currency Contracts The Company’s foreign currency policy with regard to its underwriting operations is generally to hold foreign currency assets, including cash, investments and receivables that approximate the foreign currency liabilities, including claims and claim expense reserves and reinsurance balances payable. When necessary, the Company may use foreign currency forward and option contracts to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities associated with its underwriting operations. The fair value of the Company’s underwriting operations related foreign currency contracts is determined using indicative pricing obtained from counterparties or broker quotes. At September 30, 2017, the Company had outstanding underwriting related foreign currency contracts of $191.1 million in notional long positions and $68.5 million in notional short positions, denominated in U.S. dollars (December 31, 2016 - $184.2 million and $91.4 million, respectively). Investment Portfolio Related Foreign Currency Forward Contracts The Company’s investment operations are exposed to currency fluctuations through its investments in non-U.S. dollar fixed maturity investments, short term investments and other investments. From time to time, the Company may employ foreign currency forward contracts in its investment portfolio to either assume foreign currency risk or to economically hedge its exposure to currency fluctuations from these investments. The fair value of the Company’s investment portfolio related foreign currency forward contracts is determined using an interpolated rate based on closing forward market rates. At September 30, 2017, the Company had outstanding investment portfolio related foreign currency contracts of $17.6 million in notional long positions and $4.5 million in notional short positions, denominated in U.S. dollars (December 31, 2016 - $26.9 million and $57.3 million, respectively). Credit Derivatives The Company’s exposure to credit risk is primarily due to its fixed maturity investments, short term investments, premiums receivable and reinsurance recoverable. From time to time, the Company purchases credit derivatives to hedge its exposures in the insurance industry, and to assist in managing the credit risk associated with ceded reinsurance. The Company also employs credit derivatives in its investment portfolio to either assume credit risk or hedge its credit exposure. The fair value of credit derivatives is determined using industry valuation models, broker bid indications or internal pricing valuation techniques. The fair value of these credit derivatives can change based on a variety of factors including changes in credit spreads, default rates and recovery rates, the correlation of credit risk between the referenced credit and the counterparty, and market rate inputs such as interest rates. At September 30, 2017, the Company had outstanding credit derivatives of $15.5 million in notional positions to hedge credit risk and $13.3 million in notional positions to assume credit risk, denominated in U.S. dollars (December 31, 2016 - $Nil and $75.2 million, respectively). |
Commitments, Contingencies and Other Items |
9 Months Ended |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Items | COMMITMENTS, CONTINGENCIES AND OTHER ITEMS There are no material changes from the commitments and contingencies previously disclosed in the Company’s Form 10-K for the year ended December 31, 2016. Legal Proceedings The Company and its subsidiaries are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on reinsurance treaties or contracts or direct surplus lines insurance policies. In the Company’s industry, business litigation may involve allegations of underwriting or claims-handling errors or misconduct, disputes relating to the scope of, or compliance with, the terms of delegated underwriting agreements, employment claims, regulatory actions or disputes arising from the Company’s business ventures. The Company’s operating subsidiaries are subject to claims litigation involving, among other things, disputed interpretations of policy coverages. Generally, the Company’s direct surplus lines insurance operations are subject to greater frequency and diversity of claims and claims-related litigation than its reinsurance operations and, in some jurisdictions, may be subject to direct actions by allegedly injured persons or entities seeking damages from policyholders. These lawsuits, involving or arising out of claims on policies issued by the Company’s subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in its loss and loss expense reserves. In addition, the Company may from time to time engage in litigation or arbitration related to its claims for payment in respect of ceded reinsurance, including disputes that challenge the Company’s ability to enforce its underwriting intent. Such matters could result, directly or indirectly, in providers of protection not meeting their obligations to the Company or not doing so on a timely basis. The Company may also be subject to other disputes from time to time, relating to operational or other matters distinct from insurance or reinsurance claims. Any litigation or arbitration, or regulatory process, contains an element of uncertainty, and the value of an exposure or a gain contingency related to a dispute is difficult to estimate accordingly. Currently, the Company believes that no individual litigation or arbitration to which it is presently a party is likely to have a material adverse effect on its financial condition, business or operations. |
Condensed Consolidating Financial Information Provided In Connection With Outstanding Debt Of Subsidiaries |
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Condensed Consolidating Financial Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | CONDENSED CONSOLIDATING FINANCIAL INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT OF SUBSIDIARIES The following tables present condensed consolidating balance sheets at September 30, 2017 and December 31, 2016, condensed consolidating statements of operations and condensed consolidating statements of comprehensive (loss) income for the three and nine months ended September 30, 2017 and 2016, and condensed consolidating statements of cash flows for the nine months ended September 30, 2017. Each of RenRe North America Holdings Inc., Platinum Underwriters Finance, Inc. and RenaissanceRe Finance is a 100% owned subsidiary of RenaissanceRe. For additional information related to the terms of the Company’s outstanding debt securities, see “Note 9. Debt and Credit Facilities” in the “Notes to Consolidated Financial Statements” in the Company’s Form 10-K for the year ended December 31, 2016 and “Note 7. Debt and Credit Facilities” in the “Notes to Consolidated Financial Statements” included herein.
(1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Effective October 1, 2017, DaVinciRe completed an equity capital raise of $248.6 million from third-party investors and RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $49.7 million of its shares in DaVinciRe to third-party shareholders. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 22.1%, effective October 1, 2017. The Company expects its noncontrolling economic ownership in DaVinciRe to fluctuate over time. Effective October 1, 2017, Upsilon RFO issued $46.5 million of non-voting preference shares to investors, including $17.7 million to the Company. Effective October 1, 2017, the Company’s participation in the risks assumed by Upsilon RFO was 16.0%. Commencing in early October 2017, devastating wildfires impacted many areas of the state of California (the “California Wildfires”). Based on the Company’s initial assessment of the California Wildfires, it is anticipated that the impact on the Company’s financial results will be significant and could be material. In addition, it is possible that the Company will be impacted by other events that have occurred thus far in the fourth quarter. The Company’s assessment of the impact from the California Wildfires and such other events, which remains at a very preliminary stage, is based on, among other things, initial industry insured loss estimates, market share analysis, the application of its modeling techniques, a review of its in-force contracts and potential uncertainties relating to reinsurance recoveries. It is difficult at this time to provide an accurate estimate of the financial impact of these events, including as a result of the preliminary nature of the information available, the preliminary nature of the information provided thus far by industry participants, the magnitude and recent occurrence of the events, and other factors. |
Significant Accounting Policies (Policy) |
9 Months Ended |
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Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States (“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 presentation 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 | 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 recoverables, including allowances for reinsurance recoverables deemed uncollectible; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; and the Company’s deferred tax valuation allowance. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 was issued to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and the classification of taxes paid on the statements of cash flows. ASU 2016-09 became effective for the Company in annual and interim periods beginning after December 15, 2016. The cumulative effect of the adoption of ASU 2016-09 was a $2.2 million increase to opening retained earnings as of January 1, 2017. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 will be effective for public business entities in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. ASU 2014-09 notably excludes the accounting for insurance contracts, leases, financial instruments and guarantees. The Company is currently evaluating the impact of this guidance, with its implementation efforts primarily focused on other income (loss) on its consolidated statements of operations. The adoption of ASU 2014-09 is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous guidance. ASU 2016-02 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and clarifies that the reporting organization should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the organization’s other deferred tax assets. ASU 2016-01 is effective for public business entities in annual and interim periods beginning after December 15, 2017. Earlier adoption is generally not permitted, except for certain specific provisions of ASU 2016-01. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 modifies the recognition of credit losses by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is applicable to financial assets such as loans, debt securities, trade receivables, off-balance sheet credit exposures, reinsurance receivables, and other financial assets that have the contractual right to receive cash. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company's invested assets are measured at fair value through net income, and therefore those invested assets would not be impacted by the adoption of ASU 2016-13. The Company has other financial assets, such as reinsurance recoverables, that could be impacted by the adoption of ASU 2016-13. ASU 2016-13 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) settlement and payment of zero coupon debt instruments, (2) contingent consideration, (3) proceeds from settlement of insurance claims, (4) proceeds from settlement of corporate and bank owned life insurance policies, (5) distributions from equity method investees, (6) cash receipts from beneficial interests obtained by a transferor, and (7) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of cash flows. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfers occur; this is a change from current guidance which prohibits the recognition of current and deferred income taxes until the underlying assets have been sold to outside entities. ASU 2016-16 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). Among other things, ASU 2017-04 requires the following: (1) the elimination of step 2 of the goodwill impairment test; entities will no longer utilize the implied fair value of their assets and liabilities for purposes of testing goodwill for impairment, (2) the quantitative portion of the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount; an impairment charge is to be recognized for the excess of carrying amount over fair value, but only to the extent of the amount of goodwill allocated to that reporting unit, and (3) foreign currency translation adjustments are not to be allocated to a reporting unit from an entity’s accumulated other comprehensive income; the reporting unit’s carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual periods, or any interim goodwill impairment tests in annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Fixed Maturity Investments Trading | The following table summarizes the fair value of fixed maturity investments trading:
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Schedule of Contractual Maturities of 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.
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Schedule of Fair Value of Equity Investments Trading | The following table summarizes the fair value of equity investments trading:
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Schedule of Net Investment Income | The components of net investment income are as follows:
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Schedule of Net Realized and Unrealized Gains On Investments | Net realized and unrealized gains on investments are as follows:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | 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:
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Schedule Of Quantitative Information Used As Level 3 Inputs | Below is a summary of quantitative information regarding the significant observable and unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis:
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Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Level 3 Inputs | Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Interest and dividend income are included in net investment income and are excluded from the reconciliation.
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Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Level 3 Inputs | Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Interest and dividend income are included in net investment income and are excluded from the reconciliation.
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Schedule Of Balances Elected To Account For At Fair Value | Below is a summary of the balances the Company has elected to account for at fair value:
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Schedule Of Other Investments Measured Using Net Asset Valuations | The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient:
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Reinsurance (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect Of Reinsurance And Retrocessional Activity On Premiums Written And Earned And On Net Claims And Claim Expenses Incurred | The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred:
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Reserve for Claims and Claim Expenses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Loss Reserves [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claim Expenses | The following table details the Company’s prior year development by segment of its liability for unpaid claims and claim expenses:
The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Casualty and Specialty segment:
The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item:
The following table summarizes the Company’s claims and claim expense reserves by segment, allocated between case reserves, additional case reserves and IBNR:
Activity in the liability for unpaid claims and claim expenses is summarized as follows:
|
Debt and Credit Facilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below:
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Schedule of Line of Credit Facilities | The outstanding amounts issued or drawn under each of the Company’s significant credit facilities is set forth below:
|
Noncontrolling Interests (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Redeemable Noncontrolling Interest | The activity in redeemable noncontrolling interest – DaVinciRe is detailed in the table below:
A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below:
A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations set forth below:
The activity in redeemable noncontrolling interest – Medici is detailed in the table below:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share:
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Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Significant Components Of The Company's Revenues And Expenses By Segment | A summary of the significant components of the Company’s revenues and expenses by segment is as follows:
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Location on Consolidated Balance Sheets and Fair Value Of Principal Derivative Instruments | The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments:
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Schedule of Gain (Loss) Recognized In Consolidated Statements Of Operations Related To Principal Derivative Instruments | The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table:
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Condensed Consolidating Financial Information Provided In Connection With Outstanding Debt Of Subsidiaries (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets |
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Condensed Consolidating Statements of Operations |
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Condensed Consolidating Statement of Comprehensive Income |
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Condensed Consolidating Statements Of Cash Flows |
(1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Organization (Details) |
Nov. 13, 2014 |
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RenaissanceRe Upsilon Fund Ltd. | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Percent of segregated funds owned by third party investors | 100.00% |
Significant Accounting Policies Significant Accounting Policies (Details) $ in Millions |
Jan. 01, 2017
USD ($)
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Retained Earnings | Cumulative effect of adoption of ASU 2016-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption | $ 2.2 |
Investments (Schedule of Contractual Maturities of Fixed Maturity Investments) (Details) $ in Thousands |
Sep. 30, 2017
USD ($)
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Trading Securities [Abstract] | |
Amortized Cost, Due in less than one year | $ 366,988 |
Amortized Cost, Due after one through five years | 4,326,788 |
Amortized Cost, Due after five through ten years | 985,535 |
Amortized Cost, Due after ten years | 151,964 |
Amortized Cost | 7,061,487 |
Fair Value, Due in less than one year | 367,091 |
Fair Value, Due after one through five years | 4,324,948 |
Fair Value, Due after five through ten years | 1,001,975 |
Fair Value, Due after ten years | 153,764 |
Fair Value | 7,092,969 |
Mortgage-backed | |
Trading Securities [Abstract] | |
Amortized Cost | 1,047,676 |
Fair Value | 1,061,869 |
Asset-backed | |
Trading Securities [Abstract] | |
Amortized Cost | 182,536 |
Fair Value | $ 183,322 |
Investments (Pledged Investments) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Investments [Abstract] | ||
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of various counterparties | $ 3,300.0 | $ 2,700.0 |
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of U.S. state regulatory authorities | $ 1,400.0 | $ 842.6 |
Investments (Reverse Purchase Agreements) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 477.5 | $ 78.7 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102.00% |
Reinsurance (Effect Of Reinsurance And Retrocessional Activity On Premiums Written And Earned And On Net Claims And Claim Expenses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Premiums written | ||||
Direct | $ 64,040 | $ 53,488 | $ 205,253 | $ 154,205 |
Assumed | 576,229 | 376,736 | 2,184,521 | 1,897,280 |
Ceded | (157,048) | (146,002) | (806,672) | (735,672) |
Net premiums written | 483,221 | 284,222 | 1,583,102 | 1,315,813 |
Premiums earned | ||||
Direct | 61,908 | 43,097 | 176,433 | 114,173 |
Assumed | 712,499 | 471,097 | 1,731,845 | 1,392,278 |
Ceded | (226,615) | (167,673) | (612,176) | (454,922) |
Net premiums earned | 547,792 | 346,521 | 1,296,102 | 1,051,529 |
Claims and claim expenses | ||||
Gross claims and claim expenses incurred | 2,482,510 | 153,846 | 2,924,217 | 540,696 |
Claims and claim expenses recovered | (1,260,814) | (41,271) | (1,366,853) | (133,766) |
Net claims and claim expenses incurred | $ 1,221,696 | $ 112,575 | $ 1,557,364 | $ 406,930 |
Fair Value Measurements (Summary Of The Balances Company Has Elected To Account For At Fair Value) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Fair Value Disclosures [Abstract] | ||
Other investments | $ 548,492 | $ 549,805 |
Other assets | 2,383 | 4,379 |
Other liabilities | $ 5,876 | $ 17,383 |
Fair Value Measurements (Company's Portfolio of Other Investments Measured Using Net Asset Valuations) (Details) $ in Thousands |
Sep. 30, 2017
USD ($)
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Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | $ 216,448 |
Unfunded Commitments | 324,240 |
Private equity partnerships | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 196,280 |
Unfunded Commitments | 300,482 |
Senior secured bank loan funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 19,572 |
Unfunded Commitments | 23,758 |
Hedge funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 596 |
Unfunded Commitments | $ 0 |
Reserve for Claims and Claim Expenses (Schedule of Liability for Unpaid Claims and Claims Adjustment Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Net reserves as of January 1 | $ 2,568,730 | $ 2,632,519 | ||
Net incurred related to: | ||||
Current year | $ 1,209,261 | $ 158,360 | 1,561,027 | 483,574 |
Prior years | 12,435 | (45,785) | (3,663) | (76,644) |
Total net incurred | 1,221,696 | 112,575 | 1,557,364 | 406,930 |
Net paid related to: | ||||
Current year | 158,685 | 39,971 | ||
Prior years | 396,411 | 391,047 | ||
Total net paid | 555,096 | 431,018 | ||
Foreign exchange | 33,011 | 11,899 | ||
Net reserves as of September 30 | 3,604,009 | 2,620,330 | 3,604,009 | 2,620,330 |
Reinsurance recoverable as of September 30 | 1,588,304 | 240,769 | 1,588,304 | 240,769 |
Gross reserves as of September 30 | $ 5,192,313 | $ 2,861,099 | $ 5,192,313 | $ 2,861,099 |
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