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What changed in RENAISSANCERE HOLDINGS LTD's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of RENAISSANCERE HOLDINGS LTD's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+667 added−685 removedSource: 10-K (2025-02-12) vs 10-K (2024-02-21)

Top changes in RENAISSANCERE HOLDINGS LTD's 2024 10-K

667 paragraphs added · 685 removed · 543 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

169 edited+29 added−50 removed176 unchanged
Biggest changeThe following table sets forth the amounts and percentages of our gross premiums written by territory of coverage exposure: Year ended December 31, 2023 2022 2021 (in thousands, except percentages) Gross Premiums Written Percentage of Gross Premiums Written Gross Premiums Written Percentage of Gross Premiums Written Gross Premiums Written Percentage of Gross Premiums Written Property Segment U.S. and Caribbean $ 2,303,013 26.0 % $ 2,343,830 25.5 % $ 2,257,088 28.8 % Worldwide 798,623 9.0 % 1,053,369 11.4 % 1,188,737 15.2 % Japan 85,823 1.0 % 104,767 1.1 % 114,981 1.5 % Australia and New Zealand 70,107 0.8 % 86,080 0.9 % 69,188 0.9 % Europe 163,500 1.9 % 62,998 0.7 % 253,678 3.2 % Worldwide (excluding U.S.) (1) 70,646 0.8 % 37,436 0.4 % 34,742 0.4 % Other 70,702 0.8 % 45,761 0.5 % 40,310 0.5 % Total Property Segment 3,562,414 40.3 % 3,734,241 40.5 % 3,958,724 50.5 % Casualty and Specialty Segment U.S. and Caribbean 2,333,096 26.3 % 2,556,466 27.7 % 1,721,663 22.0 % Worldwide 2,280,687 25.7 % 2,328,030 25.3 % 1,746,450 22.3 % Europe 197,228 2.2 % 327,831 3.6 % 217,721 2.8 % Worldwide (excluding U.S.) (1) 130,334 1.5 % 177,746 1.9 % 108,376 1.4 % Australia and New Zealand 27,397 0.3 % 35,973 0.4 % 29,001 0.4 % Other 331,210 3.7 % 53,253 0.6 % 51,863 0.6 % Total Casualty and Specialty Segment 5,299,952 59.7 % 5,479,299 59.5 % 3,875,074 49.5 % Total gross premiums written $ 8,862,366 100.0 % $ 9,213,540 100.0 % $ 7,833,798 100.0 % (1) The category “Worldwide (excluding U.S.)” consists of contracts that cover more than one geographic region (other than the U.S.).
Biggest changeOur largest exposure has historically been to the U.S. and Caribbean. 7 The following table sets forth the amounts and percentages of our gross premiums written by territory of coverage exposure: Year ended December 31, 2024 2023 2022 (in thousands, except percentages) Gross Premiums Written Percentage of Gross Premiums Written Gross Premiums Written Percentage of Gross Premiums Written Gross Premiums Written Percentage of Gross Premiums Written Property Segment U.S. and Caribbean $ 2,996,981 25.5 % $ 2,303,013 26.0 % $ 2,343,830 25.5 % Worldwide 1,063,292 9.1 % 798,623 9.0 % 1,053,369 11.4 % Europe 244,523 2.1 % 163,500 1.9 % 62,998 0.7 % Worldwide (excluding U.S.) (1) 180,688 1.5 % 70,646 0.8 % 37,436 0.4 % Japan 106,533 0.9 % 85,823 1.0 % 104,767 1.1 % Australia and New Zealand 101,976 0.9 % 70,107 0.8 % 86,080 0.9 % Other 129,738 1.1 % 70,702 0.8 % 45,761 0.5 % Total Property Segment 4,823,731 41.1 % 3,562,414 40.3 % 3,734,241 40.5 % Casualty and Specialty Segment Worldwide 3,217,662 27.3 % 2,280,687 25.7 % 2,328,030 25.3 % U.S. and Caribbean 2,986,956 25.5 % 2,333,096 26.3 % 2,556,466 27.7 % Europe 353,863 3.0 % 197,228 2.2 % 327,831 3.6 % Worldwide (excluding U.S.) (1) 195,489 1.7 % 130,334 1.5 % 177,746 1.9 % Australia and New Zealand 43,183 0.4 % 27,397 0.3 % 35,973 0.4 % Other 112,182 1.0 % 331,210 3.7 % 53,253 0.6 % Total Casualty and Specialty Segment 6,909,335 58.9 % 5,299,952 59.7 % 5,479,299 59.5 % Total gross premiums written $ 11,733,066 100.0 % $ 8,862,366 100.0 % $ 9,213,540 100.0 % (1) The category “Worldwide (excluding U.S.)” consists of contracts that cover more than one geographic region (other than the U.S.).
From time to time we consider diversification into new ventures, either through organic growth, the formation of new joint ventures or managed funds, or the acquisition of, or the investment in, other companies or books of business of other companies.
From time to time, we consider diversification into new ventures, either through organic growth, the formation of new joint ventures or managed funds, or the acquisition of, or investment in, other companies or books of business of other companies.
Our investment portfolio serves as a stable capital base against which we can underwrite risk, and also allows us to generate relatively attractive investment income and returns over time.
Our investment portfolio also serves as a stable capital base against which we can underwrite risk, and also allows us to generate relatively attractive investment income and returns over time.
In addition, the Risk Management and Own Risk Solvency and Assessment Act requires Renaissance Reinsurance U.S. and RREAG, US Branch to: (i) maintain a risk management framework for identifying, assessing, monitoring, managing, and reporting its material and relevant risks; (ii) complete an ORSA at least once each year and at any time there is a significant change to the risk profile of Renaissance Reinsurance U.S. or its holding company system; and (iii) submit an ORSA summary report to the MIA at not more than each year.
In addition, the Risk Management and Own Risk Solvency and Assessment Act requires Renaissance Reinsurance U.S. and RREAG, US Branch to: (i) maintain a risk management framework for identifying, assessing, monitoring, managing, and reporting its material and relevant risks; (ii) complete an ORSA at least once each year and at any time there is a significant change to the risk profile of the entity or its holding company system; and (iii) submit an ORSA summary report to the MIA at not more than each year.
Our Other category primarily includes the results of: (1) our investment unit which manages and invests the funds generated by our consolidated operations; (2) our share of strategic investments in certain markets we believe offer attractive risk-adjusted returns or where we believe our investment adds value, and where, rather than assuming exclusive management responsibilities ourselves, we partner with other market participants; and 7 (3) corporate expenses, certain expenses related to acquisitions and dispositions, capital servicing costs and noncontrolling interests.
Our Other category primarily includes the results of: (1) our investment unit which manages and invests the funds generated by our consolidated operations; (2) our share of strategic investments in certain markets we believe offer attractive risk-adjusted returns or where we believe our investment adds value, and where, rather than assuming exclusive management responsibilities ourselves, we partner with other market participants; and (3) corporate expenses, certain expenses related to acquisitions and dispositions, capital servicing costs and noncontrolling interests.
“RREAG” RenaissanceRe Europe AG “RREAG, Australia Branch” RenaissanceRe Europe AG, Australia Branch “RREAG, Bermuda Branch” RenaissanceRe Europe AG, Bermuda Branch, an overseas company that has been granted a permit from the Minister of Finance to engage in or carry on any trade or business pursuant to the Companies Act and which is also registered to carry on insurance business as a Class 4 insurer pursuant to the Insurance Act in Bermuda “RREAG, UK Branch” RenaissanceRe Europe AG, UK Branch “RREAG, US Branch” RenaissanceRe Europe AG, US Branch “RREAG” RenaissanceRe Europe AG “RSML” RenaissanceRe Syndicate Management Ltd.
“RREAG” RenaissanceRe Europe AG “RREAG, Australia Branch” RenaissanceRe Europe AG, Australia Branch 27 “RREAG, Bermuda Branch” RenaissanceRe Europe AG, Bermuda Branch, an overseas company that has been granted a permit from the Minister of Finance to engage in or carry on any trade or business pursuant to the Companies Act and which is also registered to carry on insurance business as a Class 4 insurer pursuant to the Insurance Act in Bermuda “RREAG, UK Branch” RenaissanceRe Europe AG, UK Branch “RREAG, US Branch” RenaissanceRe Europe AG, US Branch “RREAG” RenaissanceRe Europe AG “RSML” RenaissanceRe Syndicate Management Ltd.
The BMA has certain powers of investigation and intervention, relating to Bermuda-registered entities and their holding companies, subsidiaries and other affiliates, including the power to cancel a Bermuda-registered entity’s registration, which it may exercise in the interest of such an insurer’s policyholders or if 19 there is any risk of insolvency or a breach of the Insurance Act or the license conditions of a Bermuda-registered entity.
The BMA has certain powers of investigation and intervention, relating to Bermuda-registered entities and their holding companies, subsidiaries and other affiliates, including the power to cancel a Bermuda-registered entity’s registration, which it may exercise in the interest of such an insurer’s policyholders or if there is any risk of insolvency or a breach of the Insurance Act or the license conditions of a Bermuda-registered entity.
The Board also receives regular reports from the Operational Risk and Resilience Committee, which includes members of senior management, compliance professionals and others and oversees policies and procedures relating to accounting, financial reporting, internal controls, legal and regulatory matters, and complex transactions, among other matters. Our ERM framework operates via a three lines of defense model.
The Board also receives regular reports from the Operational Risk and Resilience Committee, which includes members of senior management, compliance professionals and others and oversees policies and procedures relating to accounting, financial reporting, internal controls, legal and regulatory matters, and complex transactions, among other matters. Our ERM framework operates via a three lines model.
We believe that this increase in severe weather, coupled with currently projected demographic trends in catastrophe-exposed regions, contributes to factors that will increase the average economic value of expected losses, increase the number of people exposed per year to natural disasters and in general exacerbate disaster risk, including risks to infrastructure, global supply chains and agricultural production.
We believe that this increase in severe weather, coupled with currently projected demographic trends in catastrophe-exposed regions, contributes to factors that will increase the average economic value of expected losses, increase the number of people exposed per year to natural disasters and in general exacerbate disaster risk, including risks to infrastructure, global supply chains and 15 agricultural production.
“DEI” Diversity, Equity and Inclusion “ECR” Enhanced Capital Requirement “ERM” enterprise risk management “EU” European Union “Exchange Act” the Securities Exchange Act of 1934, as amended “FAL” a deposit that must be submitted to support the underwriting capacity of a member of Lloyd’s “FASB” Financial Accounting Standards Board 26 “FCA” U.K.
“DEI” Diversity, Equity and Inclusion “ECR” Enhanced Capital Requirement “ERM” enterprise risk management “EU” European Union “Exchange Act” the Securities Exchange Act of 1934, as amended “FAL” a deposit that must be submitted to support the underwriting capacity of a member of Lloyd’s “FASB” Financial Accounting Standards Board “FCA” U.K.
RREAG, US Branch does not pay ordinary dividends and would need approval from the NYDFS for any return of capital to RREAG. Reinsurance Regulation . The insurance laws of each U.S. state indirectly regulate the sale of reinsurance to licensed ceding insurers by non-admitted alien reinsurers acting from locations outside the state through the state’s credit for reinsurance laws.
RREAG, US Branch does not pay ordinary dividends and would need approval from the NYDFS for any return of capital to RREAG. 22 Reinsurance Regulation The insurance laws of each U.S. state indirectly regulate the sale of reinsurance to licensed ceding insurers by non-admitted alien reinsurers acting from locations outside the state through the state’s credit for reinsurance laws.
We address other areas of operational risk through our business continuity and incident response program, human resource practices such as motivating and retaining top talent, our strict tax protocols and our legal and regulatory policies and procedures. 15 Environmental and Climate Change Matters Our principal economic exposures arise from our coverages for natural disasters and catastrophes.
We address other areas of operational risk through our business continuity and incident response program, human resource practices such as motivating and retaining top talent, our strict tax protocols and our legal and regulatory policies and procedures. ENVIRONMENTAL AND CLIMATE CHANGE MATTERS Our principal economic exposures arise from our coverages for natural disasters and catastrophes.
Principal Wholly-Owned Operating Subsidiaries Currently, our principal wholly-owned operating subsidiaries are Renaissance Reinsurance, RREAG, Renaissance Reinsurance U.S., RenaissanceRe Specialty U.S. and Syndicate 1458. Through these subsidiaries we write the property and casualty and specialty (re)insurance that drives our underwriting income. Renaissance Reinsurance is our primary flagship balance sheet, through which we have broad exposure to a range of risks.
Principal Wholly-Owned Operating Subsidiaries Our principal wholly-owned operating subsidiaries are Renaissance Reinsurance, RREAG, Renaissance Reinsurance U.S., RenaissanceRe Specialty U.S. and Syndicate 1458. Through these subsidiaries we write the property and casualty and specialty (re)insurance that drives our underwriting income. Renaissance Reinsurance is our primary flagship balance sheet, through which we have broad exposure to a range of risks.
Upsilon RFO’s segregated accounts enter into collateralized reinsurance arrangements, and each account’s capital is sourced either directly from third-party investors, or from Upsilon Fund. We consolidate the financial results of certain accounts of Upsilon RFO and account for the portion of its premium that we do not own as a ceded 10 retrocession.
Upsilon RFO’s segregated accounts enter into collateralized reinsurance arrangements, and each account’s capital is sourced either directly from third-party investors, or from Upsilon Fund. We consolidate the financial results of certain accounts of Upsilon RFO and account for the portion of its premium that we do not own as a ceded retrocession.
The underlying risk models integrated into our underwriting and REMS© framework are a combination of internally constructed and commercially available models. We use commercially available models to assist with validating and stress testing our base model and REMS© results. Before we bind a (re)insurance risk, exposure data, historical loss information and other risk data is gathered from customers.
The underlying risk models integrated into our underwriting and REMS© 12 framework are a combination of internally constructed and commercially available models. We use commercially available models to assist with validating and stress testing our base model and REMS© results. Before we bind a (re)insurance risk, exposure data, historical loss information and other risk data is gathered from customers.
Our excess of loss property contracts generally cover natural perils, and our predominant exposure under such coverage is to property damage. However, other risks, including business interruption and other non-property losses, may also be covered under our property reinsurance contracts when arising from a covered peril. 6 We offer our coverages on a worldwide basis.
Our excess of loss property contracts generally cover natural perils, and our predominant exposure under such coverage is to property damage. However, other risks, including business interruption and other non-property losses, may also be covered under our property reinsurance contracts when arising from a covered peril. We offer our coverages on a worldwide basis.
As a result, certain Bermuda businesses which are part of large multinational groups will be subject to a 15% corporate income tax in Bermuda for fiscal years beginning on or after January 1, 2025, regardless of any assurance 20 given pursuant to the Exempted Undertakings Tax Protection Act 1966.
As a result, certain Bermuda businesses which are part of large multinational groups will be subject to a 15% corporate income tax in Bermuda for fiscal years beginning on or after January 1, 2025, regardless of any assurance given pursuant to the Exempted Undertakings Tax Protection Act 1966.
The underwriting capacity of a member of Lloyd’s must be supported by providing a deposit, referred to as “Funds at Lloyd’s” or “FAL,” in an amount determined on the basis of such entity’s solvency and capital requirements. The amount of such deposit is calculated for each member through the completion of an annual capital adequacy exercise.
The underwriting capacity of a member of Lloyd’s must be supported by providing a deposit, referred to as “Funds at Lloyd’s” or “FAL,” in an amount determined on the basis of such entity’s solvency and capital requirements. The amount of such deposit is calculated 23 for each member through the completion of an annual capital adequacy exercise.
Expense override An amount paid to a ceding company in addition to the acquisition cost to compensate for overhead expenses. Frequency The number of claims occurring during a given coverage period. 31 Funds at Lloyd’s Funds of an approved form that are lodged and held in trust at Lloyd’s as security for a member’s underwriting activities.
Expense override An amount paid to a ceding company in addition to the acquisition cost to compensate for overhead expenses. Frequency The number of claims occurring during a given coverage period. Funds at Lloyd’s Funds of an approved form that are lodged and held in trust at Lloyd’s as security for a member’s underwriting activities.
Our underwriting results reflect the full value of the business written on behalf of our consolidated operating subsidiaries, joint ventures and managed funds, before we reflect the interests of third-party investors in our consolidated joint ventures and managed funds that are not retained by us. The following table shows gross premiums written allocated to each of our segments.
Our underwriting results reflect the full value of the business written on behalf of our consolidated operating subsidiaries, joint ventures and managed funds, before we reflect the interests of third-party investors in our consolidated joint ventures and managed funds that are not retained by us. 4 The following table shows gross premiums written allocated to each of our segments.
We produce probability distributions to represent our estimates of the related underlying risks which our products cover, which we believe helps us to make consistent underwriting decisions and to manage our total risk portfolio. In addition, we also produce, utilize, and report on models which measure our utilization of capital in light of regulatory capital considerations and constraints.
We produce probability distributions to represent our estimates of the related underlying risks which our products cover, which we believe helps us to make consistent underwriting decisions and to manage our total risk portfolio. 13 In addition, we also produce, utilize, and report on models which measure our utilization of capital in light of regulatory capital considerations and constraints.
We believe this capability helps us to manage our aggregate exposures and to rigorously analyze and evaluate individual proposed transactions in the context of our in-force portfolio. This aggregation process captures line of business, segment and corporate risk profiles, calculates internal and external capital tests and explicitly models ceded reinsurance.
We believe this capability helps us to manage 14 our aggregate exposures and to rigorously analyze and evaluate individual proposed transactions in the context of our in-force portfolio. This aggregation process captures line of business, segment and corporate risk profiles, calculates internal and external capital tests and explicitly models ceded reinsurance.
The third line of defense, our Internal Audit team, reports to the Audit Committee of the Board and provides independent, objective assurance as to the assessment of the adequacy and effectiveness of our internal control systems and also coordinates risk-based audits and compliance reviews and other specific initiatives to evaluate and address risk within targeted areas of our business.
The third line, our Internal Audit team, reports to the Audit Committee of the Board and provides independent, objective assurance as to the assessment of the adequacy and effectiveness of our internal control systems and also coordinates risk-based audits and compliance reviews and other specific initiatives to evaluate and address risk within targeted areas of our business.
Although reinsurance contract terms and rates are generally not subject to regulation by state insurance authorities, a U.S. insurance company ordinarily will enter into a reinsurance agreement only if it can obtain 22 credit on its statutory financial statements for the reinsurance ceded.
Although reinsurance contract terms and rates are generally not subject to regulation by state insurance authorities, a U.S. insurance company ordinarily will enter into a reinsurance agreement only if it can obtain credit on its statutory financial statements for the reinsurance ceded.
Renaissance Reinsurance of Europe and Renaissance Services of Europe Ltd., our Dublin-based Irish service company, are both registered with the Companies Registration Office in Ireland and subject to the Companies Act 2014. • Australia : RREAG, Australia Branch, based in Sydney, Australia, provides coverage to insurers and reinsurers from Australia and New Zealand.
Renaissance Reinsurance of Europe DAC and Renaissance Services of Europe Ltd., our Dublin-based Irish service company, are both registered with the Companies Registration Office in Ireland and subject to the Companies Act 2014. • Australia : RREAG, Australia Branch, based in Sydney, Australia, provides coverage to insurers and reinsurers from Australia and New Zealand.
The Lloyd’s Council has wide discretionary powers to regulate members’ underwriting at Lloyd’s, including, the power to withdraw a member’s permission to underwrite business or to underwrite a particular class of business and to change the basis on which syndicate expenses are allocated. 23 • Assessments.
The Lloyd’s Council has wide discretionary powers to regulate members’ underwriting at Lloyd’s, including, the power to withdraw a member’s permission to underwrite business or to underwrite a particular class of business and to change the basis on which syndicate expenses are allocated. • Assessments.
Our claims and claim expense reserves are a combination of case reserves, additional case reserves (ACR) and incurred but not reported losses and incurred but not enough reported losses, collectively referred to as IBNR. Case reserves are losses reported to us by insureds and ceding companies, but which have not yet been paid.
Our claims and claim expense reserves are a combination of case reserves, ACR and incurred but not reported losses and incurred but not enough reported losses, collectively referred to as IBNR. Case reserves are losses reported to us by insureds and ceding companies, but which have not yet been paid.
All Bermuda registered insurers are required to comply with the BMA’s Insurance Code of Conduct, which establishes duties, requirements and standards regarding sound corporate governance, risk management and internal controls. • Special Purpose Insurer and Collateralized Insurer Reporting Requirements.
Bermuda registered insurers are required to comply with the BMA’s Insurance Code of Conduct, which establishes duties, requirements and standards regarding sound corporate governance, risk management and internal controls. • Special Purpose Insurer and Collateralized Insurer Reporting Requirements.
Our capital management business is one of the oldest, largest and most respected in the industry and provides us with a larger capital base, through which we are able to write more business and reach a broader customer base.
Our capital management business is one of the oldest, largest and most respected in the industry and provides us with a larger capital base, through which we are able to write more business and reach a 8 broader customer base.
Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts the Company’s financial results. Other Transactions From time to time, we pursue other customized reinsurance and financing transactions.
Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts our financial results. Other Transactions From time to time, we pursue other customized reinsurance and financing transactions.
In order to estimate the risk profile of each line of non-natural hazard reinsurance ( i.e. , our casualty and specialty lines of business), we establish probability distributions and assess the correlations with the rest of 13 our portfolio.
In order to estimate the risk profile of each line of non-natural hazard reinsurance (i.e., our casualty and specialty lines of business), we establish probability distributions and assess the correlations with the rest of our portfolio.
From time to time, Renaissance Reinsurance or certain other operating subsidiaries write business for both themselves and DaVinci Reinsurance, and then cede a portion to DaVinci Reinsurance. Fontana Fontana assumes casualty and specialty risks, including long-tail lines.
From time to time, Renaissance Reinsurance or certain other operating subsidiaries write business for both themselves and DaVinci Reinsurance, and then cede a portion to DaVinci Reinsurance. 9 Fontana Fontana assumes casualty and specialty risks, including long-tail lines.
Department of the Treasury “U.S.” United States of America “Upsilon” collectively, Upsilon Fund and Upsilon RFO “Upsilon Diversified” RenaissanceRe Upsilon Diversified Fund, a segregated account of Upsilon Fund 28 “Upsilon Fund” RenaissanceRe Upsilon Fund Ltd. “Upsilon RFO” Upsilon RFO Re Ltd.
Department of the Treasury “U.S.” United States of America “Upsilon” collectively, Upsilon Fund and Upsilon RFO “Upsilon Diversified” RenaissanceRe Upsilon Diversified Fund, a segregated account of Upsilon Fund “Upsilon Fund” RenaissanceRe Upsilon Fund Ltd. “Upsilon RFO” Upsilon RFO Re Ltd.
We consolidate the financial results of certain segregated accounts of Upsilon RFO and account for the portion of its premium that we do not own as a ceded retrocession.
We consolidate the financial results of certain segregated accounts of Upsilon RFO and account for the portion of its premium that we do not own as a ceded retrocession. We do not consolidate the financial results of Upsilon Fund.
We establish IBNR using actuarial techniques and expert judgement to represent the anticipated cost of claims which have not been reported to us yet or where we anticipate increased reporting. Our reserving committee, which includes members of our senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our audited consolidated financial statements.
We establish IBNR using actuarial techniques and expert judgment to represent the anticipated cost of claims which have not been reported to us yet or where we anticipate increased reporting. Our reserving committee, which includes members of our senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our audited consolidated financial statements.
Bermuda-registered insurance companies and management companies are also regulated under the Bermuda Insurance Act 1978 and related regulations, which impose various requirements depending on a company’s classification under the Insurance Act.
Bermuda-registered insurance companies and insurance management companies are also regulated under the Insurance Act and related regulations, which impose various requirements depending on a company’s classification under the Insurance Act.
For example, if one of these entities were to generate underwriting losses due to a natural catastrophe, the full amount would be reflected in net income (loss) on our consolidated statement of operations, but ultimately we would only retain the portion of that amount corresponding to our economic interest in the vehicle in the net income (loss) attributable to RenaissanceRe.
For example, if one of these entities were to generate underwriting losses due to a natural catastrophe, the full amount would be reflected in net income (loss) on our consolidated statements of operations, but ultimately we would only retain the portion of that amount corresponding to our economic interest in the vehicle in the net income (loss) attributable to RenaissanceRe.
We believe that REMS© is a robust underwriting and risk management system that has been successfully integrated into our business 12 processes and culture.
We believe that REMS© is a robust underwriting and risk management system that has been successfully integrated into our business processes and culture.
U.K. Regulation Lloyd’s Regulation . The operations of RSML are subject to oversight by Lloyd’s, substantially effected through the Council of Lloyd’s. RSML’s business plan for Syndicate 1458, including maximum underwriting capacity, requires annual approval by Lloyd’s. Lloyd’s may require changes to any business plan presented to it or additional capital to be provided to support the underwriting plan.
Lloyd’s Regulation The operations of RSML are subject to oversight by Lloyd’s, substantially effected through the Council of Lloyd’s. RSML’s business plan for Syndicate 1458, including maximum underwriting capacity, requires annual approval by Lloyd’s. Lloyd’s may require changes to any business plan presented to it or additional capital to be provided to support the underwriting plan.
In addition, refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Estimates—Claims and Claim Expense Reserves” for more information on our current estimates versus our initial estimates of our claims reserves, and sensitivity analysis for each of our Property and Casualty and Specialty segments.
In addition, refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Estimates—Claims and Claim Expense Reserves” for more information on our actual results versus our initial estimates of our claims reserves, and sensitivity analysis for each of our Property and Casualty and Specialty segments.
Capital and Surplus Requirements . Renaissance Reinsurance U.S. is required to meet certain minimum statutory capital and surplus requirements under Maryland law, including risk-based capital requirements, and to submit an annual report regarding its risk-based capital levels to the MIA. As of December 31, 2023, we believe Renaissance Reinsurance U.S. exceeded all applicable Maryland minimum capital and surplus requirements.
Capital and Surplus Requirements Renaissance Reinsurance U.S. is required to meet certain minimum statutory capital and surplus requirements under Maryland law, including risk-based capital requirements, and to submit an annual report regarding its risk-based capital levels to the MIA. As of December 31, 2024, we believe Renaissance Reinsurance U.S. exceeded all applicable Maryland minimum capital and surplus requirements.
The principal risk areas that make up our ERM framework are assumed risk (including reserve risk), business environment risk and operational risk: 14 • Assumed Risk.
The principal risk areas that make up our ERM framework are assumed risk (including reserve risk), business environment risk and operational risk: • Assumed Risk.
As of December 31, 2023, we believe RREAG, US Branch exceeded all applicable minimum capital and surplus requirements. The NYDFS may conduct periodic examinations of RREAG, US Branch and requires the filing of annual and other reports relating to RREAG, US Branch’s financial condition and risk-based capital levels.
As of December 31, 2024, we believe RREAG, US Branch exceeded all applicable minimum capital and surplus requirements. The NYDFS may conduct periodic examinations of RREAG, US Branch and requires the filing of annual and other reports relating to RREAG, US Branch’s financial condition and risk-based capital levels.
We aim to match the portfolio of risk that we build with the most appropriate form(s) of capital. As a result of our strategy and the diversified nature of our business, we believe that we are uniquely positioned to utilize various forms of capital depending on the situation.
Superior Capital Management. We aim to match the portfolio of risk that we build with the most appropriate form(s) of capital. As a result of our strategy and the diversified nature of our business, we believe that we are uniquely positioned to utilize various forms of capital depending on the situation.
We control a majority of the outstanding voting rights in Fontana, and as a result, consolidate it in our financial results. Fontana assumed a whole account quota share of our global casualty and specialty book of business, including the credit portfolio, ensuring alignment.
We control a majority of the outstanding voting rights in Fontana, and as a result, consolidate it in our financial results. Fontana assumes a whole account quota share of our global casualty and specialty book of business, including the credit portfolio, ensuring alignment.
Certain solvency requirements apply to all Bermuda companies under the Bermuda Companies Act 1981. Additional requirements apply to insurance companies and insurance groups. At the group level, the value of the insurance group’s statutory assets must exceed the amount of the insurance group’s statutory liabilities by the group minimum solvency margin.
Capital, Solvency, and Liquidity Requirements Certain solvency requirements apply to all Bermuda companies under the Bermuda Companies Act 1981. Additional requirements apply to insurance companies and insurance groups. At the group level, the value of the insurance group’s statutory assets must exceed the amount of the insurance group’s statutory liabilities by the group minimum solvency margin.
Additional regulations apply to the determination of the types of capital instruments that may be used to satisfy the solvency requirements. RenaissanceRe and certain of our Bermuda-registered insurers are also generally required to maintain available statutory economic capital and surplus at a level at least equal to their ECR, which level may be adjusted by the BMA.
Additional regulations apply to the determination of the types of capital instruments that may be used to satisfy the solvency requirements. RenaissanceRe and certain of our Bermuda-registered insurers are also generally required to maintain available statutory economic capital and surplus at a level at least equal to their enhanced capital requirement, which level may be adjusted by the BMA.
The financial security of the Lloyd’s market as a whole is regularly assessed by three independent rating agencies (A.M. Best, S&P and Fitch). Syndicates at Lloyd’s take their financial security rating from the rating of the Lloyd’s market.
The financial security of the Lloyd’s market as a whole is regularly assessed by three independent rating agencies (A.M. Best, S&P and Fitch). Syndicates at Lloyd’s take their financial security rating from the rating of the Lloyd’s market. • Intervention Powers .
As such, RREAG and Validus Switzerland must comply with Swiss insurance supervisory law and regulations applicable to reinsurers. RREAG maintains branch operations in Australia, Bermuda, the U.K. and the U.S., and Validus Switzerland maintains branch operations in Bermuda, each in accordance with applicable local regulations.
As such, RREAG must comply with Swiss insurance supervisory law and regulations applicable to reinsurers. RREAG maintains branch operations in Australia, Bermuda, the U.K. and the U.S., each in accordance with applicable local regulations.
Moreover, any participant of RREAG or Validus Switzerland must notify FINMA if it changes its participation to cross below certain thresholds of the capital or voting rights in RREAG or Validus Switzerland, respectively. Additional Regulation Certain of our other branches and affiliated entities are subject to regulation in other jurisdictions, including those described below.
Moreover, any participant of RREAG must notify FINMA if it changes its participation to cross below certain thresholds of the capital or voting rights in RREAG. Additional Regulation Certain of our other branches and affiliated entities are subject to regulation in other jurisdictions, including those described below.
Retrocedant A reinsurer who cedes all or a portion of its assumed insurance to another reinsurer. 33 Retrocessional reinsurance; Retrocessionaire A transaction whereby a reinsurer cedes to another reinsurer, the retrocessionaire, all or part of the reinsurance that the first reinsurer has assumed.
Retrocedant A reinsurer who cedes all or a portion of its assumed insurance to another reinsurer. 32 Retrocessional reinsurance; Retrocessionaire A transaction whereby a reinsurer cedes to another reinsurer, the retrocessionaire, all or part of the reinsurance that the first reinsurer has assumed.
Casualty and Specialty Segment We write casualty and specialty reinsurance and insurance across a broad range of classes of business, including general casualty, professional liability, credit and other specialty lines. This business is predominantly reinsurance, although the Company also writes insurance business, primarily through delegated authority arrangements.
Casualty and Specialty Segment We write casualty and specialty reinsurance and insurance across a broad range of classes of business, including general casualty, professional liability, credit and other specialty lines. This business is predominantly reinsurance, although we also write insurance business, primarily through delegated authority arrangements.
Renaissance Reinsurance U.S. is required to file various detailed reports, including annual and quarterly financial statements in accordance with prescribed statutory accounting rules, with regulatory officials in the jurisdictions in which it conducts business.
Disclosure and Reporting Requirements Renaissance Reinsurance U.S. is required to file various detailed reports, including annual and quarterly financial statements in accordance with prescribed statutory accounting rules, with regulatory officials in the jurisdictions in which it conducts business.
Our entities registered under the Insurance Act include: • Class 4 general business insurers : Renaissance Reinsurance, Validus Re, Validus Switzerland, Bermuda Branch, and DaVinci Reinsurance • Class 3B general business insurers : RenaissanceRe Specialty U.S., Vermeer and RREAG, Bermuda Branch • Class 3A general business insurers : Top Layer, Fontana Reinsurance Ltd. and Fontana Reinsurance U.S.
Our entities registered under the Insurance Act include: • Class 4 general business insurers : Renaissance Reinsurance, and DaVinci Reinsurance • Class 3B general business insurers : RenaissanceRe Specialty U.S., Vermeer and RREAG, Bermuda Branch • Class 3A general business insurers : Top Layer, Fontana Reinsurance Ltd. and Fontana Reinsurance U.S.
Generally, all affiliate transactions involving Renaissance Reinsurance U.S. must be fair and reasonable and, if material or of specified types, require prior notice to and approval or non-disapproval by the MIA. Disclosure and Reporting Requirements .
Generally, all affiliate transactions involving Renaissance Reinsurance U.S. must be fair and reasonable and, if material or of specified types, require prior notice to and approval or non-disapproval by the MIA.
As alien reinsurers, Renaissance Reinsurance, Validus Re, DaVinci Reinsurance, RREAG, Validus Switzerland, RenaissanceRe Specialty U.S., and Vermeer have each been approved by one or more U.S. states as a “Certified Reinsurer” or “Reciprocal Jurisdiction Reinsurer,” which permits it to post reduced or zero security, respectively, while still allowing its cedents to take financial statement credit for the reinsurance.
As alien reinsurers, Renaissance Reinsurance, DaVinci Reinsurance, RREAG, RenaissanceRe Specialty U.S., and Vermeer have each been approved by one or more U.S. states as a “Certified Reinsurer” or “Reciprocal Jurisdiction Reinsurer,” which permits it to post reduced or zero security, respectively, while still allowing its cedants to take financial statement credit for the reinsurance.
Managed Joint Ventures and Managed Funds We manage a number of joint ventures and managed funds which provide us with an additional presence in the market, enhance our client relationships and generate fee income and profit commissions. Currently, our principal joint ventures and managed funds include DaVinci, Top Layer, Fontana, Medici, Upsilon and Vermeer.
Managed Joint Ventures and Managed Funds We manage a number of joint ventures and managed funds which provide us with an additional presence in the market, enhance our client relationships and generate management fee income and performance fee income. Currently, our principal joint ventures and managed funds include DaVinci, Fontana, Medici, Vermeer, Top Layer and Upsilon.
RREAG and Validus Switzerland are also required to maintain and update with FINMA a regulatory business plan, including details on their organization, financials, qualified participants, management, oversight, control persons, and responsible actuary. RREAG and Validus Switzerland must notify FINMA of any changes to their business plan, and FINMA is required to approve certain changes. • Dividends and Distributions.
RREAG is also required to maintain and update with FINMA a regulatory business plan, including details on their organization, financials, qualified participants, management, oversight, control persons, and responsible actuary. RREAG must notify FINMA of any changes to its business plan, and FINMA is required to approve certain changes. • Dividends and Distributions.
We must also file with the BMA any changes to an “officer” or “controller” (as such are defined by applicable regulations) of our insurance managers. All registered insurers are required to give notice to the BMA of their intention to effect a material change within the meaning of the Insurance Act. Capital, Solvency, and Liquidity Requirements .
We must also file with the BMA any changes to an “officer” or “controller” (as such are defined by applicable regulations) of our insurance managers. All registered insurers are required to give notice to the BMA of their intention to effect a material change within the meaning of the Insurance Act.
We do not regard the effect of these regulations to be material to us at this time. • Singapore : Branches of Renaissance Reinsurance, Validus Re and DaVinci Reinsurance based in the Republic of Singapore have each received a license to carry on insurance business as a general reinsurer and are regulated by the Accounting and Corporate Regulatory Authority as a foreign company pursuant to Singapore’s Companies Act.
We do not regard the effect of these regulations to be material to us at this time. • Singapore : Branches of Renaissance Reinsurance and DaVinci Reinsurance based in the Republic of Singapore have each received a license to carry on insurance business as a general reinsurer and are regulated by ACRA as a foreign company pursuant to Singapore’s Companies Act.
Financial Conduct Authority “FCR” financial condition report “FINMA” Swiss Financial Market Supervisory Authority “Fitch” Fitch Ratings Ltd. “Fontana” Fontana Holdings L.P. and its subsidiaries “Form 10-K” this Annual Report on Form 10-K for the year ended December 31, 2023 “GAAP” generally accepted accounting principles in the U.S.
Financial Conduct Authority “FCR” financial condition report “FINMA” Swiss Financial Market Supervisory Authority “Fitch” Fitch Ratings Ltd. 26 “Fontana” Fontana Holdings L.P. and its subsidiaries “Fontana Re” Fontana Reinsurance Ltd. “Fontana US” Fontana Reinsurance U.S. Ltd. “Form 10-K” this Annual Report on Form 10-K for the year ended December 31, 2024 “GAAP” generally accepted accounting principles in the U.S.
The business we write through delegated authority arrangements is primarily insurance business. We view our insurance business through a reinsurance lens, with a focus on approaching it as a portfolio of risks. Our relative mix of business between proportional business and excess of loss business has fluctuated in the past and will likely vary in the future.
The business we write through delegated authority arrangements is primarily insurance business. We view our insurance business through a reinsurance lens, with a focus on approaching it as a portfolio of risks. Our relative mix of business between proportional business and excess of loss business has fluctuated in the past and has the potential to change in the future.
In our capital partners business, we aim to leverage our access to business and our underwriting capabilities on an efficient capital base, develop fee income, generate profit commissions, diversify our portfolio, and provide attractive risk-adjusted returns to our capital providers.
In our Capital Partners unit, we aim to leverage our access to business and our underwriting capabilities on an efficient capital base, develop fee income, generate performance fees, diversify our portfolio, and provide attractive risk-adjusted returns to our capital providers.
RREAG and Validus Switzerland have to submit an annual report (including audited financial statements and a management report), an annual supervisory report, and a forward-looking self-assessment of its risk situation and capital requirements, or ORSA, to FINMA each year.
RREAG has to submit an annual report (including audited financial statements and a management report), FCR, an annual supervisory report, and a forward-looking self-assessment of its risk situation and capital requirements, or ORSA, to FINMA each year.
We believe our modeling and technical expertise, our risk management products, and our track record of keeping our promises have made us a provider of first choice in many lines of business to our customers worldwide. We seek to offer stable, predictable and consistent risk-based pricing and a prompt turnaround on claims. 4 Superior Risk Selection .
We seek to offer stable, predictable and consistent risk-based pricing and prompt turnaround on claims. We believe our modeling and technical expertise, our broad risk appetite, and our track record of keeping our promises have made us a provider of first choice in many lines of business to our customers worldwide.
Renaissance Services of Asia Pte. Ltd., our Singapore-based service company, is registered with the Accounting and Corporate Regulatory Authority and subject to Singapore’s Companies Act. • Ireland : Renaissance Reinsurance of Europe is regulated and supervised by the Central Bank of Ireland and is subject to the requirements of Solvency II.
Renaissance Services of Asia Pte. Ltd., our Singapore-based service company, is registered with ACRA and subject to Singapore’s Companies Act. • Ireland : Renaissance Reinsurance of Europe DAC is regulated and supervised by the Central Bank of Ireland and is subject to the requirements of Solvency II.
“Validus” Validus Holdings, Validus Specialty, and their respective subsidiaries that were acquired in the Validus Acquisition (including Validus Re and Validus Holdings (UK) Ltd), collectively “Validus Acquisition” The acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated in the Stock Purchase Agreement. “Validus Business” the collective business of Validus “Validus Holdings” Validus Holdings, Ltd.
“Validus” Validus Holdings, Validus Specialty, and their respective subsidiaries that were acquired in the Validus Acquisition (including Validus Re and Validus Holdings (UK) Ltd), collectively “Validus Acquisition” The acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated in the Stock Purchase Agreement. “Validus Holdings” Validus Holdings, Ltd. “Validus Re” Validus Reinsurance, Ltd.
For example, the EU recently adopted the Corporate Sustainability Reporting Directive (CSRD) that will require disclosure of the risks and opportunities arising from social and environmental issues, and on the impact of companies’ activities on people and the environment.
For example, the EU adopted the Corporate Sustainability Reporting Directive that requires disclosure of the risks and opportunities arising from social and environmental issues, and on the impact of companies’ activities on people and the environment.
Any person who intends to directly or indirectly participate in RREAG or Validus Switzerland with a participation reaching or exceeding the thresholds of 10% of the capital or voting rights in RREAG or Validus Switzerland, respectively, must notify FINMA.
Change of Control Any person who intends to directly or indirectly participate in RREAG with a participation reaching or exceeding the thresholds of 10% of the capital or voting rights in RREAG must notify FINMA.
Additional restrictions apply to any dividend and any reduction in statutory capital over applicable thresholds. Income Taxes . Currently, neither we nor our shareholders are required to pay Bermuda income or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax in respect of our shares.
Additional restrictions apply to any dividend and any reduction in statutory capital over applicable thresholds. Income Taxes Through December 31, 2024, neither we nor our shareholders were required to pay Bermuda income or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax in respect of our shares.
All dollar amounts referred to in this Form 10-K are in U.S. dollars unless otherwise indicated. Due to rounding, numbers presented in the tables included in this Form 10-K may not add up precisely to the totals provided. OVERVIEW RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching desirable risk with efficient capital.
All dollar amounts referred to in this Form 10-K are in U.S. dollars unless otherwise indicated. Due to rounding, numbers presented in the tables included in this Form 10-K may not add up precisely to the totals provided. OVERVIEW RenaissanceRe is a global provider of reinsurance and insurance.
Upsilon Fund is managed by RFM in return for a management fee and a performance fee. We do not consolidate Upsilon Fund. We maintain a significant investment in Upsilon RFO.
Upsilon Fund is managed by RFM in return for a management fee and a performance fee. We do not consolidate Upsilon Fund.
Our Bermuda-registered insurers are generally prohibited from declaring or paying any dividends if in breach of the required minimum solvency margin or minimum liquidity ratio, or if the declaration or payment of such dividend would cause them to fail to meet the required minimum solvency margin or minimum liquidity ratio or if certain solvency requirements are not met.
Restrictions on Dividends, Distributions and Reductions of Capital Our Bermuda-registered insurers are generally prohibited from declaring or paying any dividends if in breach of the required minimum solvency margin or minimum liquidity ratio, if declaring or paying such dividend would cause them to fail to meet the required minimum solvency margin or minimum liquidity ratio, or if certain solvency requirements are not met.
A purchaser of 10% or more of RenaissanceRe’s common shares or voting power would therefore be considered to have acquired control of RSML or RenaissanceRe CCL. 24 Swiss Regulation Overview. RREAG and Validus Switzerland are reinsurance companies licensed and supervised by the Swiss Financial Supervisory Authority, or FINMA.
A purchaser of 10% or more of RenaissanceRe’s common shares or voting power would therefore be considered to have acquired control of RSML or RenaissanceRe CCL. Swiss Regulation Overview RREAG is a reinsurance company licensed and supervised by the Swiss Financial Market Supervisory Authority FINMA, or FINMA.
Our investments in insurance-linked securities are generally linked to property losses due to natural catastrophes. International Financial Reporting Standards Accounting principles, standards and interpretations as set forth in opinions of the International Accounting Standards Board which are applicable in the circumstances as of the date in question.
Insurance-linked securities Financial instruments whose values are driven by (re)insurance loss events. Our investments in insurance-linked securities are generally linked to property losses due to natural catastrophes. International Financial Reporting Standards Accounting principles, standards and interpretations as set forth in opinions of the International Accounting Standards Board which are applicable in the circumstances as of the date in question.
December 31, 2023 Entity Consolidated (1) RenaissanceRe’s Economic Ownership (2) Generates Management Fee Income (3) Generates Performance Fee Income (4) DaVinci X 27.8% X X Fontana X 31.6% X X Medici X 11.7% X — Vermeer X 0% X — Top Layer — (5) — X — Upsilon X (6) — X X (1) As a result of our controlling voting interest, we consolidate these entities in our financial statements, and third parties’ economic interest in the entities’ net assets and net income are reflected in our Consolidated Balance Sheets and Consolidated Statements of Operations in “Redeemable noncontrolling interests” and “Net (income) loss attributable to redeemable noncontrolling interests,” respectively.
December 31, 2024 Entity Consolidated (1) RenaissanceRe’s Economic Ownership (2) Generates Management Fee Income (3) Generates Performance Fee Income (4) DaVinci X 25.4% X X Fontana X 26.5% X X Medici X 15.8% X — Vermeer X — X — Top Layer — (5) — X — Upsilon X (6) — X X (1) As a result of our controlling voting interest, we consolidate these entities in our financial statements, such that the third parties’ economic interest in the entities’ net assets and net income (loss) are reflected in our consolidated balance sheets and consolidated statements of operations in redeemable noncontrolling interests and net (income) loss attributable to redeemable noncontrolling interests, respectively.
Our investment portfolio includes both investments that we make on behalf of the Company and whose investment results are fully 11 retained by the Company, as well as investments that we manage on behalf of our joint ventures and managed funds, in which we retain only a partial economic interest. The majority of our investments are highly-rated fixed income securities.
Our investment portfolio includes both investments that we make on behalf of the Company and whose investment results are fully retained by the Company, as well as investments that we manage on behalf of our joint ventures and managed funds, in which we retain no, or only a partial, economic interest.
COMPETITION The markets in which we operate are highly competitive. Our competitors include independent reinsurance and insurance companies, subsidiaries, divisions and/or affiliates of globally recognized insurance companies, domestic and international underwriting operations, such as managing general agents, as well as a range of other entities offering risk transfer protection on a collateralized or other non-traditional basis.
Our competitors include independent reinsurance and insurance companies, subsidiaries, divisions and/or affiliates of globally recognized insurance companies, domestic and international underwriting operations, such as managing general agents, as well as a range of other entities offering risk transfer protection on a collateralized or other non-traditional basis.
Certain casualty and specialty lines of business such as marine, energy and terrorism are also exposed to catastrophe risk, and we seek to appropriately estimate and manage correlations between these lines and our property reinsurance portfolio. Our Casualty and Specialty segment also offers certain casualty insurance products, including general liability and professional liability lines of business.
Certain casualty and specialty lines of business such as marine, energy and terrorism are also exposed to catastrophe risk, and we seek to appropriately estimate and manage correlations between these lines and our property reinsurance portfolio.
The solvency requirement of the SST is met if the available risk-bearing capital reaches or exceeds the required target capital. The SST has been recognized by the EU and the U.K. as an equivalent standard to European and U.K. standards, respectively.
Certain of these requirements may be determined by FINMA. The solvency requirement of the SST is met if the available risk-bearing capital exceeds the required target capital. The SST has been recognized by the EU and the U.K. as an equivalent standard to European and U.K. standards, respectively.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAlong with increased competition, there has also been significant consolidation in the (re)insurance industry over the last several years, including among our competitors, customers and brokers. These consolidated enterprises may try to use their enhanced market power or better capitalization to negotiate price reductions for our products and services or obtain a larger market share through increased line sizes.
Biggest changeWe could incur greater expenses relating to customer acquisition and retention, further reducing our operating margins. Government sponsored (re)insurance funds or other initiatives may also adversely affect demand for insurance and reinsurance. Along with increased competition, there has also been significant consolidation in the (re)insurance industry over the last several years, including among our competitors, customers and brokers.
Changes to our issuer credit ratings, or the capital models and rating methodologies used by ratings agencies, may also impact our ability access capital.
Changes to our issuer credit ratings, or the capital models and rating methodologies used by ratings agencies, may also impact our ability to access capital.
Such provisions may apply to a U.S. person who owns (or is considered to own under applicable tax rules) 10% or more of our shares, if RenaissanceRe or any of our non-U.S. subsidiaries is considered a controlled foreign corporation in any year, and to a U.S. person who owns any of our shares, if RenaissanceRe is a PFIC or any of our non-U.S. subsidiaries generates gross related person insurance income that constitutes 20% or more of its gross insurance income in any year.
Such provisions may apply to a U.S. person who owns (or is considered to own under applicable tax rules) 10% or more of our shares if RenaissanceRe or any of our non-U.S. subsidiaries is considered a controlled foreign corporation in any year, and to a U.S. person who owns any of our shares if RenaissanceRe is considered a PFIC or any of our non-U.S. subsidiaries generates gross related person insurance income that constitutes 20% or more of its gross insurance income in any year.
Although we 45 cannot predict whether, when or in what form the proposed regulations might be finalized, if they are finalized in their current form, we may decide not to undertake affiliate reinsurance transactions that would otherwise be undertaken for non-tax business reasons in the future and there may be an increased risk that gross related person insurance income constitutes 20% or more of the gross insurance income of one or more of our non-U.S. insurance subsidiaries in any year.
Although we cannot predict whether, when or in what form the proposed regulations might be finalized, if they are finalized in their current form, we may decide not to undertake affiliate reinsurance transactions that would otherwise be undertaken for non-tax business reasons in the future and there may be an increased risk that gross related person insurance income constitutes 20% or more of the gross insurance income of one or more of our non-U.S. insurance subsidiaries in any year.
Accordingly, we are heavily dependent on the original underwriting decisions made by our ceding companies and delegated authority counterparties, who may not have adequately evaluated the risks to be reinsured. As a result, the premiums they cede to us may not properly compensate us for the risks we assume, which could materially adversely affect our financial condition.
Accordingly, we are heavily dependent on the original underwriting decisions made by our ceding companies and delegated authority counterparties, who may not have 36 adequately evaluated the risks to be reinsured. As a result, the premiums they cede to us may not properly compensate us for the risks we assume, which could materially adversely affect our financial condition.
Although we generally seek to hedge significant non-U.S. dollar positions, we have experienced, and may in the future experience, losses resulting from fluctuations in the values of these foreign currencies, which could cause our consolidated earnings to decrease. In addition, failure to manage our foreign currency exposures could cause our results of operations to be more volatile.
Although we generally seek to hedge significant non-U.S. dollar positions, we have experienced, and may in the future experience, losses resulting from fluctuations in the values of these foreign currencies, which could cause our consolidated earnings to decrease. In addition, failure to manage our foreign currency exposures could 41 cause our results of operations to be more volatile.
Additionally, any indebtedness we incur at higher interest rates may require higher ongoing debt service payments than our existing debt arrangements, which could leave us with less cash available for our operations. We are also exposed to the risk that the contingent capital facilities we have in place may 42 not be available as expected.
Additionally, any indebtedness we incur at higher interest rates may require higher ongoing debt service payments than our existing debt arrangements, which could leave us with less cash available for our operations. We are also exposed to the risk that the contingent capital facilities we have in place may not be available as expected.
A significant cyber incident, including system failure, security breach, disruption by malware or other damage could interrupt or delay our operations, result in a violation of applicable cybersecurity and privacy and other laws, damage our 40 reputation, cause a loss of customers or expose sensitive customer data, or give rise to monetary fines and other penalties, which could be significant.
A significant cyber incident, including system failure, security breach, disruption by malware or other damage could interrupt or delay our operations, result in a violation of applicable cybersecurity and privacy and other laws, damage our reputation, cause a loss of customers or expose sensitive customer data, or give rise to monetary fines and other penalties, which could be significant.
The sanctions laws and regulations of non-U.S. jurisdictions in which we operate may differ from those of the U.S. and these differences may also expose us to sanctions violations. In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws that generally prohibit corrupt payments or improper gifts to non-U.S. governments or officials.
The sanctions laws and regulations of non-U.S. jurisdictions in which we operate may differ from those of the U.S. and these differences may also expose us to sanctions violations. 43 In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws that generally prohibit corrupt payments or improper gifts to non-U.S. governments or officials.
It is possible that an employee or intermediary could fail to comply with applicable laws and regulations. In such event, we could 44 be exposed to civil penalties, criminal penalties and other sanctions, including fines or other punitive actions, which could damage our business and reputation, and could adversely affect our financial condition and results of operations.
It is possible that an employee or intermediary could fail to comply with applicable laws and regulations. In such event, we could be exposed to civil penalties, criminal penalties and other sanctions, including fines or other punitive actions, which could damage our business and reputation, and could adversely affect our financial condition and results of operations.
Accordingly, our financial results are subject to a variety of investment risks, including risks relating to general economic conditions, inflation, market volatility, interest rate fluctuations, foreign currency risk, liquidity risk and credit and default risk. Volatility in global financial markets has impacted, and may continue to impact, the value of our investment portfolio and our strategic investments.
Accordingly, our financial results are subject to a variety of investment risks, including risks relating to general economic conditions, inflation, market volatility, interest rate fluctuations, foreign currency risk, commodity risk, liquidity risk and credit and default risk. Volatility in global financial markets has impacted, and may continue to impact, the value of our investment portfolio and our strategic investments.
Were this to occur, such company could be subject to U.S. corporate income and additional branch profits taxes on the portion of its earnings effectively connected to such U.S. trade or business. If we or one or more of our Bermuda subsidiaries were ultimately held to be subject to taxation, our earnings would correspondingly decline.
Were this to occur, such company could be subject to U.S. corporate income tax and additional branch profits taxes on the portion of its earnings effectively connected to such U.S. trade or business. If we or one or more of our Bermuda subsidiaries were ultimately held to be subject to U.S. taxation, our earnings would correspondingly decline.
However, the application of these provisions is complex, subject to legal uncertainties and dependent on facts that may change from time to time and of which we may have limited knowledge. Accordingly, we can provide no assurances that any of these provisions will not apply for any taxable year.
However, the application of these provisions is complex, subject to legal uncertainties and dependent on facts that may change from time to time and of which we may have 44 limited knowledge. Accordingly, we can provide no assurances that any of these provisions will not apply for any taxable year.
Moreover, we can provide no assurance that we will be able to attract and raise additional third-party capital for our existing joint ventures and managed funds or for potential new joint ventures and managed funds and therefore we may forego existing and/or potentially attractive fee income and other income generating opportunities.
Moreover, we can provide no assurance that we will be able to attract and raise additional third-party capital for existing joint ventures or for potential new joint ventures and managed funds and therefore we may forego existing and/or potentially attractive fee income and other income generating opportunities.
Furthermore, we expect that our exposure to this uncertainty is more pronounced in our casualty business, because in these “long-tail” lines claims can typically be made for many years, making them more susceptible to these trends than our property and specialty businesses, which are generally more “short-tail.” 36 We depend on a few insurance and reinsurance brokers for a preponderance of our business, and any loss of business provided by them could adversely affect us.
Furthermore, we expect that our exposure to this uncertainty is more pronounced in our casualty business, because in these “long-tail” lines claims can typically be made for many years, making them more 35 susceptible to these trends than our property and specialty businesses, which are generally more “short-tail.” We depend on a few insurance and reinsurance brokers for a preponderance of our business, and any loss of business provided by them could adversely affect us.
A portion of our investment portfolio is allocated to other classes of investments including equity securities, catastrophe bonds, term loans and interests in alternative investment vehicles such as private equity investments, private credit investments and hedge funds.
A portion of our investment portfolio is allocated to other classes of investments including equity securities, catastrophe bonds, commodity securities, term loans and interests in alternative investment vehicles such as private equity investments, private credit investments and hedge funds.
Any such development could significantly and negatively affect our operations. 43 We face risks related to changes in Bermuda law and regulations, and the political environment in Bermuda. We are incorporated in Bermuda and many of our operating companies are domiciled in Bermuda.
Any such development could significantly and negatively affect our operations. We face risks related to changes in Bermuda law and regulations, and the political environment in Bermuda. We are incorporated in Bermuda and many of our operating companies are domiciled in Bermuda.
These provisions may have the effect of deterring purchases of large blocks of our common shares or proposals to acquire 46 us, even if our shareholders might deem these purchases or acquisition proposals to be in their best interests.
These provisions may have the effect of deterring purchases of large blocks of our common shares or proposals to acquire us, even if our shareholders might deem these purchases or acquisition proposals to be in their best interests.
In addition, our third-party capital providers may, subject to restrictions, redeem their interests in our joint ventures and managed funds or we may be unable to attract and raise additional third-party capital for our existing or potential new joint ventures and managed funds.
Our third-party capital providers may, subject to restrictions, redeem their interests in our joint ventures and managed funds or we may be unable to attract and raise additional third-party capital for our existing or potential new joint ventures and managed funds.
Under certain circumstances, if we or our subsidiaries fail to comply with these covenants or meet these financial 39 ratios, the noteholders or the lenders could declare a default and demand immediate repayment of all amounts owed to them or, where applicable, cancel their commitments to lend or issue letters of credit or, where the reimbursement obligations are unsecured, require us to pledge collateral or, where the reimbursement obligations are secured, require us to pledge additional or a different type of collateral.
Under certain circumstances, if we or our subsidiaries fail to comply with these covenants or meet these financial ratios, the noteholders or the lenders could declare a default and demand immediate repayment of all 39 amounts owed to them or, where applicable, trigger a cross-default, cancel their commitments to lend or issue letters of credit or, where the reimbursement obligations are unsecured, require us to pledge collateral or, where the reimbursement obligations are secured, require us to pledge additional or a different type of collateral.
To the extent we determine that our claims and claim expense reserves are inadequate, we may be required to increase or decrease these reserves at the time of the determination and take charges in our consolidated statement of operations, reducing our net income and available capital.
To the extent we determine that our claims and claim expense reserves are inadequate, we may be required to increase or decrease these reserves at the time of the determination and take charges in our consolidated statements of operations, reducing our net income and available capital.
We have substantial exposure to natural and non-natural catastrophic events and circumstances, such as earthquakes, hurricanes, tsunamis, winter storms, freezes, floods, fires, tornadoes, hailstorms, drought, pandemics, cyber-risks, political unrest, war, riots and acts of terrorism. Historically, a relatively large percentage of our coverage exposures has been concentrated in natural disasters in the U.S.
We have substantial exposure to natural and non-natural catastrophic events and circumstances, such as earthquakes, hurricanes, tsunamis, winter storms, freezes, floods, fires, tornadoes, hailstorms, drought, pandemics, cyber-risks, political unrest, geopolitical uncertainty and instability, war, riots and acts of terrorism. Historically, a relatively large percentage of our coverage exposures has been concentrated in natural disasters in the U.S.
Furthermore, our interests in many of the investment classes described above are subject to restrictions on redemptions and sales that limit our ability to liquidate these investments in the short term. The performance of these classes of investments is also dependent on individual investment managers and investment strategies.
Furthermore, our interests in some of the investment classes described above are subject to restrictions on redemptions and sales that limit our ability to liquidate these investments in the short term. The performance of these classes of investments is also dependent on individual investment managers and investment strategies.
Business—Marketing.” As a result, the loss of a broker, through a merger, acquisition or otherwise, could result in the loss of a substantial portion of our business, which would reduce our premium volume and could have a material adverse effect on us.
As a result, the loss of a broker, through a merger, acquisition or otherwise, could result in the loss of a substantial portion of our business, which would reduce our premium volume and could have a material adverse effect on us.
For certain investments, the valuation on our consolidated balance sheet may differ significantly from the values that would be used if ready markets existed for the securities representing interests in the relevant investment vehicles.
For certain investments, the valuation on our consolidated balance sheets may differ significantly from the values that would be used if ready markets existed for the securities representing interests in the relevant investment vehicles.
In addition, while our current business strategy focuses predominantly on writing reinsurance, we also write excess and surplus lines insurance through delegated authority arrangements.
In addition, while our current business strategy focuses predominantly on writing reinsurance, we also write insurance business, such as excess and surplus lines insurance through delegated authority arrangements.
Cybersecurity threats and incidents have increased in recent years, and we may be subject to heightened cyber-related risks. Our business depends on the proper functioning and availability of our information technology platforms, including communications and data processing systems and our proprietary systems.
Cybersecurity threats and incidents have increased in recent years, and we continue to be subject to heightened cyber-related risks. Our business depends on the proper functioning and availability of our 38 information technology platforms, including communications and data processing systems and our proprietary systems.
If inflation continues to increase for a prolonged period or increase further, any of the risks described above could be exacerbated, and the impact on the global economy generally and on our customers could negatively affect our business, financial condition and results of operations. We are exposed to counterparty credit risk, which could increase our liabilities and reduce liquidity.
If inflation remains elevated for a prolonged period or increases further, any of the risks described above could be exacerbated, and the impact on the global economy generally and on our customers could negatively affect our business, financial condition and results of operations. We are exposed to counterparty credit risk, which could increase our liabilities and reduce liquidity.
We are also subject to risks stemming from our relationship to the entities through which we manage capital on behalf of investors, and the support that we are required to, or may, provide to them.
We are also subject to risks stemming from our relationship to the entities through which we manage capital on behalf of, or transform risk for, investors, and the support that we are required to, or may, provide to them.
We depend on the policies, procedures and expertise of ceding companies and delegated authority counterparties, who may fail to accurately assess the risks they underwrite, which exposes us to operational and financial risks. We do not separately underwrite each primary risk assumed under our reinsurance contracts or pursuant to our delegated authority business.
We are exposed to the procedures and expertise of ceding companies and delegated authority counterparties, who may fail to accurately assess the risks they underwrite, which exposes us to operational and financial risks. We do not separately underwrite each primary risk assumed under our reinsurance contracts or pursuant to our delegated authority business.
Conversely, any decline in interest rates could reduce our investment yield and net investment income, which would reduce our overall profitability. Interest rates are highly sensitive to many factors, including governmental and monetary policies, inflation levels, domestic and international economic and political conditions, and other factors beyond our control.
Conversely, any decline in interest rates could reduce our investment yield and net investment income, which would reduce our overall profitability over the medium- to long-term. Interest rates are highly sensitive to many factors, including governmental and monetary policies, inflation levels, domestic and international economic and political conditions, and other factors beyond our control.
Additionally, some of our investments are subject to pre-payment or reinvestment risk. Our investment portfolio also includes securities with a longer duration, which may be more susceptible to risks such as inflation. Changes in various factors, including prevailing interest rates and credit spreads may cause fluctuations in the market value of our fixed maturity investments.
Additionally, some of our investments are subject to prepayment or reinvestment risk. Our investment portfolio also includes securities with longer durations, which may be more susceptible to risks such as inflation. Changes in various factors, including prevailing interest rates and credit spreads may cause fluctuations in the market value of our fixed maturity investments.
Southeast or West Coast, but we have significant exposure to large catastrophic events globally. As a result, our operating results have historically been, and we expect will continue to be, significantly affected by the frequency and severity of loss events.
Southeast or West Coast, but we have significant exposure to large catastrophic events globally. We cannot predict or eliminate our exposure to these loss events, and as a result, our operating results have historically been, and we expect will continue to be, significantly affected by the frequency and severity of such events.
In addition, we believe that climate change and shifting demographic trends in catastrophe exposed regions each contributes to increases in the average economic value of 35 expected losses. Further, we believe that the recent increase in catastrophic events is indicative of permanent climate change rather than transient climate variability .
In addition, we believe that climate change and shifting economic and demographic trends in catastrophe exposed regions each contributes to increases in the average economic value of expected losses. Further, we believe that the recent increase in catastrophic events is indicative of both permanent climate change impacts and transient climate variability .
The insurance and reinsurance regulatory framework is subject to heavy scrutiny by the U.S. and individual state governments, as well as a number of international authorities, and we believe it is likely there will be increased regulatory intervention in our industry in the future.
The insurance and reinsurance regulatory framework is subject to heavy scrutiny by the U.S. and individual state governments, as well as a number of international authorities, and we believe it is likely there will be increased regulatory intervention in our industry in the future, including potential additional group-wide supervision.
In addition, it is possible that our delegated authority counterparties or other counterparties authorized to bind policies on our behalf will fail to comply with regulatory requirements, such as those relating to sanctions, or our own standards regarding underwriting and reputational risk tolerance, which could lead to increased 37 regulatory and operational burden, among other risks.
In addition, it is possible that our delegated authority counterparties or other counterparties authorized to bind and manage policies on our behalf have failed, or may in the future fail, to comply with regulatory requirements, such as those relating to sanctions, or our own standards regarding underwriting and reputational risk tolerance, which could lead to increased regulatory and operational burden, among other risks.
It is possible that these investment managers will leave, the investment strategies will become ineffective or that the managers will fail to follow our investment guidelines. Our investment portfolio may become concentrated in a limited number of issuers or have significant exposure to certain geographic areas or economic sectors. Concentration of investments can increase investment risk and portfolio volatility.
It is possible that these investment managers managing these investments will leave, the investment strategies will become ineffective or that the managers will fail to follow our investment guidelines. Our investment portfolio may become concentrated in a limited number of issuers or have significant exposure to certain geographic areas or economic sectors.
We have significant premiums receivable and reinsurance recoverable, and our failure to collect even a small portion of these amounts, or a meaningful delay in the collection of recoverables as to which our own underlying obligations are due, could negatively affect our results of operations and financial condition, perhaps materially. We may be adversely affected by foreign currency fluctuations.
We have significant premiums receivable and reinsurance recoverable, and our failure to collect even a small portion of these amounts, or a meaningful delay in the collection of recoverables as to which our own underlying obligations are due, could negatively affect our results of operations and financial condition, perhaps materially.
These and other factors may increase the volatility of our financial results. 38 Risks Related to our Strategy and Operations The loss of key senior members of management and the inability to attract and retain qualified personnel could adversely affect us.
These and other factors have in the past, and may in the future, increase the volatility of our financial results. 37 Risks Related to our Strategy and Operations The loss of key senior members of management and the inability to attract and retain qualified personnel could adversely affect us.
For example, the ongoing conflicts between Russia and Ukraine, and Israel and Hamas, may expand, which could increase our potential exposures or have far-reaching impacts on the global economy.
For example, the ongoing conflicts between Russia and Ukraine, and in the Middle East, may expand, which could increase our potential exposures or have far-reaching impacts on the global economy.
Additionally, governmental, business and societal responses to such events, such as restrictions on public gatherings, sanctions, trade restrictions, increased unemployment, and supply chain disruptions could worsen the impact of such events and could have an impact on our business and on our customers’ businesses. Any such events could increase our probability of losses.
Additionally, governmental, business and societal responses to such events, such as sanctions, trade restrictions, increased unemployment, and supply chain disruptions could worsen the impact of such events and could have an impact on our business and on our customers’ businesses.
We routinely transact business in currencies other than the U.S. dollar, our financial reporting currency. Moreover, we maintain a portion of our cash and investments in currencies other than the U.S. dollar, and certain of our subsidiaries use or have used non-U.S. dollar functional currencies.
We may be adversely affected by foreign currency fluctuations. We routinely transact business in currencies other than the U.S. dollar, our financial reporting currency. Moreover, we maintain a portion of our cash and investments in currencies other than the U.S. dollar, and certain of our subsidiaries use or have used non-U.S. dollar functional currencies.
The loss, or alteration in a negative manner, of any of this capital support could cause us to forego fee income and other income-generating opportunities and could materially impact our financial condition and results of operations.
The loss, or alteration in a negative manner, of any of this capital support could cause us to forego fee income and other income-generating opportunities.
The negotiation of potential acquisitions or strategic investments as well as the integration of an acquired business, such as the Validus Acquisition, could be unsuccessful, result in a substantial diversion of management resources, or lead to other unanticipated risks or challenges.
We frequently monitor and analyze opportunities to acquire or make strategic investments in new or other businesses. The negotiation of potential acquisitions or strategic investments as well as the integration of an acquired business, such as the Validus Acquisition, could be unsuccessful, result in a substantial diversion of management resources, or lead to other unanticipated risks or challenges.
In addition, we believe that certain factors may continue to increase the number and severity of claims from catastrophic events in the future, including increases in the value and geographic concentration of insured property, increasing risks associated with extreme weather events because of changes in climate conditions and sea-level rise, and the effects of higher-than-expected inflation.
In addition, we believe that certain factors may continue to increase the number and severity of claims from catastrophic events in the future, including increases in the value and geographic concentration of insured property, increasing risks associated with extreme weather events because of changes in climate conditions and sea-level rise, and the effects of higher-than-expected inflation. 34 The trend towards increasingly frequent and severe climate events could exacerbate our potential exposure to losses from natural perils.
Any of the foregoing could result in a decline in our investment performance and capital resources, and accordingly, adversely affect our financial results. 41 We may be adversely impacted by inflation.
Concentration of investments can increase investment risk and portfolio volatility. Any of the foregoing could result in a decline in our investment performance and capital resources, and accordingly, adversely affect our financial results. We may be adversely impacted by inflation.
The cybersecurity regulatory environment is evolving, in particular with respect to emerging technologies, such as artificial intelligence, and it is likely that the costs of complying with new or developing regulatory requirements will increase.
In addition, artificial intelligence technologies are quickly evolving and being adopted, which may increase or intensify potential cybersecurity risks. The cybersecurity regulatory environment is evolving, in particular with respect to emerging technologies, such as artificial intelligence, and it is likely that the costs of complying with new or developing regulatory requirements will increase.
On an ongoing basis, we evaluate our estimates, including those related to premiums written and earned, our net claims and claim expenses, reinsurance recoverables, investment valuations and income taxes.
On an ongoing basis, we evaluate our estimates, including those related to premiums written and earned, our net claims and claim expenses, reinsurance recoverable, fair value measurements and impairments and income taxes.
We believe that our property results have been adversely impacted over recent periods by increasing fraud and abuses at the primary claims level, as well as other forms of social inflation, and that these trends may continue.
We believe that our property results have been adversely impacted over recent periods by increasing fraud and abuses at the primary claims level, as well as other forms of social inflation, and that these trends may continue. These legal and social changes and their impact may not become apparent until some time after their occurrence.
It is possible that new or alternative capital could cause reductions in prices of our products or reduce the duration or amplitude of attractive portions of the historical market cycles. Competitors may attempt to replicate all or part of our business model and provide further competition in the markets in which we participate.
Increased capital from competitors in the market has, and may in the future, cause reductions in prices of our products or the duration or amplitude of attractive portions of the historical market cycles. Competitors may attempt to replicate all or part of our business model and provide further competition in the markets in which we participate.
U.S. laws and regulations that may be applicable to us include economic trade sanctions laws and regulations administered by OFAC as well as certain laws administered by the U.S. Department of State.
We must comply with all applicable economic sanctions and anti-bribery laws and regulations of the U.S. and other jurisdictions. U.S. laws and regulations that may be applicable to us include economic trade sanctions laws and regulations administered by OFAC as well as certain laws administered by the U.S. Department of State.
These legal and social changes and their impact may not become apparent until some time after their occurrence. Our exposure to these uncertainties could be exacerbated by social inflation trends, including increased litigation, expanded theories of liability and higher jury awards. The full effects of these and other unforeseen emerging claims and coverage issues are extremely difficult to predict.
Our exposure to these uncertainties could be exacerbated by social inflation trends, including increased litigation, expanded theories of liability and higher jury awards. The full effects of these and other unforeseen emerging claims and coverage issues are extremely difficult to predict.
The trend towards increasingly frequent and severe climate events could exacerbate our potential exposure to losses from natural perils. Our largest estimated economic exposures arise from natural disasters and other catastrophes. We believe the trend towards increased severity and frequency of weather-related natural disasters and catastrophes arises in part from climate change.
Our largest estimated economic exposures arise from natural disasters and other catastrophes. We believe the trend towards increased severity and frequency of weather-related natural disasters and catastrophes arises in part from climate change.
In particular, widespread economic factors such as supply chain disruptions have contributed to, and may continue to contribute to, significant inflation. The impact of inflation on loss costs could be more pronounced for those lines of business that are long tail in nature, as they require a relatively long period of time to finalize and settle claims.
The impact of inflation on loss costs could be more pronounced for those lines of business that are long tail in nature, as they require a relatively long period of time to finalize and settle claims.
Under these laws, control is typically presumed when a person acquires, directly or indirectly, 10% or more of the voting power of the insurance company or its parent, although this presumption is rebuttable. Therefore, a person may not acquire 10% or more of our common shares without the prior approval of the applicable insurance regulators.
Under these laws, control is typically presumed when a person acquires, directly or indirectly, 10% or more of the voting power of the insurance company or its parent, although this presumption is rebuttable.
Any of the foregoing could adversely affect our reputation, business or results of operations. The covenants in our debt agreements limit our financial and operational flexibility, which could have an adverse effect on our financial condition. We have incurred indebtedness and may incur additional indebtedness in the future.
Our failure to carry out our business plans may have an adverse effect on our long-term results of operations and financial condition. The covenants in our debt agreements limit our financial and operational flexibility, which could have an adverse effect on our financial condition. We have incurred indebtedness and may incur additional indebtedness in the future.
We market our insurance and reinsurance products worldwide through a limited number of insurance and reinsurance brokers, with three brokerage firms (Aon plc, March & McLennan Companies, Inc. and Arthur J. Gallagher) accounting for 83.7% of our gross premiums written. For additional information relating to premiums written generated by our largest brokers, refer to “Item 1.
We market our insurance and reinsurance products worldwide through a limited number of insurance and reinsurance brokers, with three brokerage firms (Aon plc, Marsh & McLennan Companies, Inc. and Arthur J. Gallagher) accounting for 82.1% of our gross premiums written.
Concerns over the negative impacts of climate change have led and will continue to lead to new regulatory responses.
Concerns over the negative impacts of climate change have led and will continue to lead to new regulatory responses. New laws and regulations relating to sustainability and climate change have been adopted and continue to be considered.
New laws and regulations relating sustainability and climate change are under consideration or being adopted, which may include specific disclosure requirements or obligations, and that this may result in additional investments and implementation of new practices and reporting processes, all entailing additional compliance costs and risk.
These laws and regulations include specific disclosure requirements or obligations, that may result in additional investments and implementation of new practices and reporting processes, all entailing additional compliance costs and risk.
The principal markets in which we operate are susceptible to monetary inflation, which could cause loss costs to increase, impact the performance of our investment portfolio, and borrowing costs to increase. We believe the risks of inflation across our key markets have increased following significant increases in inflation in the United States and elsewhere.
The principal markets in which we operate are susceptible to monetary inflation, which could cause loss costs to increase, impact the performance of our investment portfolio, and borrowing costs to increase.
We could also be required to allocate considerable time and resources to comply with any new or additional regulatory requirements in any of the jurisdictions in which we operate, and any such requirements could impact the operations of our insurance and/or non-insurance subsidiaries, result in increased costs for us and impact our financial condition.
We could also be required to allocate considerable time and resources to comply with any new or additional regulatory requirements in any of the jurisdictions in which we operate, and any such requirements could impact the operations of our insurance and/or non-insurance subsidiaries, result in increased costs for us and impact our financial condition. 42 The International Association of Insurance Supervisors has adopted a Common Framework for the supervision of Internationally Active Insurance Groups, which is focused on the group-wide supervision of IAIGs.
The Federal Reserve increased its benchmark interest rate to the highest level in 20 years in 2023, and may raise it further in the coming year. Increases in interest rates could cause the market value of our investment portfolio to decrease, which could reduce our capital resources.
The Federal Reserve increased its benchmark interest rate to the highest level in 20 years in 2023. While the Federal Reserve reduced the federal funds target rate in 2024, it still remains at a relatively high level. Further increases in interest rates could cause the market value of our investment portfolio to decrease, which could reduce our capital resources.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition, Liquidity and Capital Resources—Ratings.” We operate in a highly competitive environment. Competition and consolidation in the (re)insurance industry could adversely impact us. We compete with major U.S. and non-U.S. insurers and reinsurers, which may have greater financial, marketing and management resources than we do.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition, Liquidity and Capital Resources—Ratings.” We operate in a highly competitive environment. Competition and consolidation in the (re)insurance industry could adversely impact us.
Our operating subsidiaries conduct business globally and are subject to varying degrees of regulation and supervision in multiple jurisdictions. See “Part I, Item 1. Business—Regulation.” These statutes, regulations and policies may, among other things, restrict the ability of our subsidiaries, joint ventures or managed funds to write certain business, make certain investments and distribute funds.
Business—Regulation.” These statutes, regulations and policies may, among other things, restrict the ability of our subsidiaries, joint ventures or managed funds to write certain business, make certain investments and distribute funds.
After experiencing a prolonged soft market cycle several years ago, we believe that the (re)insurance underwriting market has been in a hard market phase for many lines of business, characterized by increasing prices and improving terms and conditions. The shift has likely been impacted by withdrawals of alternative capital, the number of catastrophic events and continuing prior year adverse development.
After experiencing a prolonged soft market cycle years ago, we believe that the (re)insurance underwriting market has been in a hard market phase for many lines of business for the past several years, characterized by increased prices and improved terms and conditions.
It is possible that adverse decisions or delays in the process could result in increased inefficiencies or costs to us. We are subject to cybersecurity risks, which may harm our business or reputation, and which could have an adverse effect on our business strategy, results of operations, or financial condition.
Any of the foregoing could adversely affect our reputation, business or financial condition and results of operations. We are subject to cybersecurity risks, which may harm our business or reputation, and which could have an adverse effect on our business strategy, results of operations, or financial condition.
Rating agencies evaluate us periodically and may downgrade or withdraw their financial strength ratings if we do not continue to meet their criteria. In addition, rating agencies may make changes in their capital models and rating methodologies, which could increase the amount of capital required to support our ratings.
In addition, rating agencies may make changes in their capital models and rating methodologies, which could increase the amount of capital required to support our ratings.
An economic recession or slowdown in economic activity may result from a new surge in the COVID-19 pandemic, from international events involving war or civil, political, or social unrest, or from other factors outside of our control.
We may be affected by adverse economic factors outside of our control, including recession or the belief that a recession may occur, and international socio-political and geopolitical events. An economic recession or slowdown in economic activity may result from international events involving war or civil, political, or social unrest, or from other factors outside of our control.
Even when reinsurance market conditions in general are strong, retrocessional market conditions may limit or prevent us from obtaining desired amounts of retrocessional reinsurance. For example, large catastrophe events have limited, and may in the future limit or prevent, us from obtaining desired amounts of new or replacement coverage on favorable terms or from entities with satisfactory creditworthiness.
For example, large catastrophe events have limited, and may in the future limit or prevent, us from obtaining desired amounts of new or replacement coverage on favorable terms or from entities with satisfactory creditworthiness. This could limit the amount of business we are willing to write or decrease the protection available to us following large loss events.
Effective January 1, 2025, the CIT generally will impose a 15% income tax on Bermuda businesses that are part of large multinational groups, notwithstanding any assurances that may have been provided pursuant to the Exempted Undertakings Tax Protection Act 1966.
Effective January 1, 2025, the CIT generally will impose a 15% income tax on our profits generated in Bermuda (except for profits earned by our joint ventures and managed funds), notwithstanding any assurances that may have been provided pursuant to the Exempted Undertakings Tax Protection Act 1966.
For example, the EU recently adopted the Corporate Sustainability Reporting Directive (CSRD) that will impose disclosure of the risks and opportunities arising from social and environmental issues, and on the impact of companies’ activities on people and the environment, and the SEC has included in its regulatory agenda potential rulemaking on climate change disclosures that, if adopted, could significantly increase compliance burdens and associated regulatory costs and complexity.
For example, the EU adopted the CSRD that will impose disclosure of the risks and opportunities arising from social and environmental issues, and on the impact of companies’ activities on people and the environment. This directive, along with other current or proposed regulations, could significantly increase compliance burdens and associated regulatory costs and complexity.
See “Part I, Item 1C. Cybersecurity” for additional information related to information technology and cybersecurity. The determination of impairments taken is highly subjective and could materially impact our financial condition or results of operations.
The determination of impairments taken is highly subjective and could materially impact our financial condition or results of operations.
Investors may have difficulty in serving process or enforcing judgments against us in the U.S. We are a Bermuda company. In addition, many of our officers and directors reside in countries outside the U.S. All or a substantial portion of our assets and the assets of these officers and directors may be located outside the U.S.
Therefore, a person may not acquire 10% or more of our common shares without the prior approval of the applicable insurance regulators. 46 Investors may have difficulty in serving process or enforcing judgments against us in the U.S. We are a Bermuda company. In addition, many of our officers and directors reside in countries outside the U.S.
This could limit the amount of business we are willing to write or decrease the protection available to us following large loss events. When we purchase reinsurance or retrocessional reinsurance for our own account, complex coverage issues or coverage disputes may impede our ability to collect amounts we believe we are owed.
When we purchase reinsurance or retrocessional reinsurance for our own account, complex coverage issues or coverage disputes may impede our ability to collect amounts we believe we are owed.
Certain of our operating subsidiaries owe legal duties and obligations (including reporting, governance and allocation obligations) to third-party investors and are subject to laws and regulations relating to the management of third-party capital. Complying with these obligations, laws and regulations requires significant management time and attention.
Certain of our subsidiaries owe legal duties and obligations (including reporting, governance and allocation obligations) to third-party investors in our joint ventures and managed funds. In addition, certain of our operating subsidiaries are registered or authorized investments funds or licensed investment managers subject to laws and regulations relating to the management of third-party capital.
Security breaches, including those at third parties that have our information, could expose us to a risk of loss or misuse of our information, litigation and potential liability.
Security incidents and breaches involving the systems of third parties that have our information, or our system, have in the past and may in the future occur, exposing us to a risk of loss or misuse of our information, litigation, and potential liability.
Further, as we continue to expand our business operations outside of Bermuda, we are increasingly subject to new and additional regulations, including, for example, laws relating to anti-corruption and anti-bribery. Our liquidity could be impacted due to regulatory requirements for collateral by non-U.S. insurers.
Further, as we continue to expand our business operations outside of Bermuda, we are increasingly subject to new and additional regulations, including, for example, laws relating to anti-corruption and anti-bribery. Our business is subject to certain laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our operations.
To the extent we continue to increase the proportional coverages we offer, we will increase our aggregate exposure to risks of this nature. A decline in our financial strength ratings may adversely impact our business, perhaps materially. Financial strength ratings are used by ceding companies and reinsurance intermediaries to assess the financial strength and quality of reinsurers and insurers.
A decline in our financial strength ratings may adversely impact our business, perhaps materially. Financial strength ratings are used by ceding companies and reinsurance intermediaries to assess the financial strength and quality of reinsurers and insurers. Rating agencies evaluate us periodically and may downgrade or withdraw their financial strength ratings if we do not continue to meet their criteria.
Additionally, it is possible that increased access of primary insurers to capital, new technologies and other factors may reduce the duration or eliminate or significantly lessen the impact of any current or future hard reinsurance underwriting market. The cumulative impact of these risks could negatively impact our profitability and ability to maintain or grow premiums.
We believe the hard/soft market cycle dynamic is likely to persist, and that we may return to soft market conditions in the future. Additionally, it is possible that increased access to capital, new technologies, including artificial intelligence, and other factors may reduce the duration or eliminate or significantly lessen the impact of any current or future hard reinsurance underwriting market.
For example, in a high interest rate environment such as the one prevailing throughout 2023 and into 2024, our borrowing costs have and may continue to increase, new debt may be available only on terms and conditions less favorable than those of our existing debt, and our access to credit may be negatively impacted.
For example, in a relatively higher interest rate environment, such as the one prevailing throughout 2023 and 2024, our borrowing costs have and may continue to increase, relative to our existing debt which was issued in a relatively lower interest rate environment.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeFrom time to time, we engage reputable third parties to perform a variety of services, including managed network security services, incident response or management services, cyber-forensic investigation services, and periodic security penetration testing which we utilize to update our security controls based on any findings.
Biggest changeWe have in place, and seek to continuously improve, a comprehensive system of security controls, managed by a dedicated staff. We also engage reputable third parties to perform a variety of services, including continuous monitoring of our information systems, incident response or management services, cyber-forensic investigation services, and periodic security penetration testing.
Our Chief Technology Officer and Corporate Information Security Officer have each served in various roles in information technology and/or information security for many years, and have extensive information technology and cybersecurity experience.The Chief Technology Officer, and Corporate Information Security Officer, alongside other multidisciplinary teams across the Company, work to monitor the prevention, detection, mitigation and remediation of cybersecurity incidents.
Our Chief Technology Officer and Chief Information Security Officer have each served in various roles in information technology and/or information security for many years, and have extensive information technology and cybersecurity experience. The Chief Technology Officer, and Chief Information Security Officer, alongside other multidisciplinary teams across the Company, work to monitor the prevention, detection, mitigation and remediation of cybersecurity incidents.
Pursuant to its charter, one of the key responsibilities of the Audit Committee of our Board is oversight of our information and cybersecurity programs and it receives regular reports on cybersecurity, information security, technology and other related matters and risks. The Audit Committee regularly briefs the Board on matters relating to its information technology and cybersecurity risk oversight.
Pursuant to its charter, one of the key responsibilities of the Audit Committee of our Board is oversight of our information and cybersecurity programs and it receives regular reports on cybersecurity, information technology and other related matters and risks. The Audit Committee regularly briefs the Board on matters relating to its information technology and cybersecurity risk oversight.
The broad, cross-functional management team leverages significant experience and expertise across a range of areas, including in managing risk, technology, and legal and regulatory affairs, among others, for assessing and managing cybersecurity risks. We have implemented incident response and business continuity plans for our operations, which are regularly tested with respect to our business-critical infrastructure and systems.
The broad, cross-functional management team leverages significant experience and expertise across a range of areas, including risk management, technology, and legal and regulatory affairs, among others, for assessing and managing cybersecurity risks. We have implemented incident response and business continuity and resilience plans for our operations, which are regularly tested with respect to our business-critical infrastructure and systems.
Our information security program is designed to meet or exceed industry best practices, and is integrated into our broader ERM framework. We are subject to a number of cybersecurity and data privacy laws and regulations, such as those promulgated by the BMA, NYDFS and EU.
Our information security program is designed to meet or exceed industry best practices and is integrated into our broader ERM framework. We are subject to a number of cybersecurity and data privacy laws and regulations, such as those promulgated by the BMA, Office of the Privacy Commission, NYDFS, MIA, and the EU.
The ISSC is responsible for providing management oversight for our cybersecurity risk management program, and its membership includes our Chief Technology Officer and Corporate Information Security Officer, among other members of senior management.
The ISSC is responsible for providing management oversight for our cybersecurity risk 47 management program, and its membership includes our Chief Technology Officer and Chief Information Security Officer, among other members of senior management.
Our Board and its Audit Committee are supported in their oversight of information technology and cybersecurity matters and risks by two management committees, the Operational Risk and Resilience Committee, which regularly reports to the Audit Committee, and the Information Security Steering Committee (the “ISSC”).
Our Board and its Audit Committee are supported in their oversight of information technology and cybersecurity matters and risks by two management committees, the Operational Risk and Resilience Committee and the Information Security Steering Committee (the “ISSC”), both of which regularly report to the Audit Committee.
In addition, we are subject to independent assessment and review by regulators, as well as an annual audit of our security controls by our independent internal audit team. We also provide regular security risk education awareness and training sessions for all staff.
In addition, we are subject to independent assessment and review by regulators and external auditors, as well as periodic audits of our security controls by our independent internal audit team. We provide regular security risk education and awareness training sessions for all staff.
Additionally, we maintain an ongoing internal third-party cybersecurity risk assessment program to oversee and identify potential cybersecurity threats associated with our use of third-party service providers, and consider these assessments when selecting and engaging service providers.
We maintain an ongoing internal third-party cybersecurity risk assessment program to identify potential cybersecurity threats associated with our use of third-party service providers, and consider these assessments when selecting and engaging service providers with periodic re-evaluations. See “Part I, Item 1A.
Our Board is responsible for overseeing enterprise-wide risk management and is actively involved in the monitoring of risks that could affect us, including cybersecurity risks.
Risk Factors” for additional information on information technology and cybersecurity related risks that may impact us and our financial results. Our Board is responsible for overseeing enterprise-wide risk management and is actively involved in the monitoring of risks that could affect us, including cybersecurity risks.
We cannot 47 predict what, if any, regulatory actions may be taken with regard to “big data” or other emerging technologies, but any actions could have a material impact on our business, business processes, financial condition, and results of operations. We have in place, and seek to continuously improve, a comprehensive system of security controls, managed by a dedicated staff.
We cannot predict what, if any, regulatory actions may be taken with regard to “big data” or emerging technologies, such as artificial intelligence, but any actions could have a material impact on our business, business processes, financial condition, and results of operations.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOur decision to repurchase common shares will depend on, among other matters, the market price of the common shares and our capital requirements. ITEM 6. [Reserved] 50
Biggest changeIn the future, we may authorize additional purchase activities under the currently authorized share repurchase program, increase the amount authorized under the share repurchase program, or adopt additional trading plans. Our decision to repurchase common shares will depend on, among other matters, the market price of the common shares and our capital requirements. ITEM 6. [Reserved] 50
The declaration and payment of future dividends is at the sole discretion of our board of directors after taking into account various factors, including our financial condition, settlement indemnifications, operating results, available cash and current and anticipated cash needs.
The declaration and payment of future dividends is at the sole discretion of our Board after taking into account various factors, including our financial condition, settlement indemnifications, operating results, available cash and current and anticipated cash needs.
The table below details the repurchases that were made under the program during the fourth quarter of 2023, and also includes other shares purchased, which represents common shares surrendered by employees in respect of withholding tax obligations on the vesting of restricted stock.
The table below details the repurchases that were made under the program during the fourth quarter of 2024, and also includes other shares purchased, which represents common shares surrendered by employees in respect of withholding tax obligations on the vesting of restricted stock.
PERFORMANCE GRAPH The following graph compares the cumulative return on our common shares, including reinvestment of our dividends on our common shares, to such return for the S&P 500 Index and the S&P Composite 1500 Property & Casualty Insurance Index for the five-year period commencing December 31, 2018 and ending December 31, 2023, assuming $100 was invested on December 31, 2018.
PERFORMANCE GRAPH The following graph compares the cumulative return on our common shares, including reinvestment of our dividends on our common shares, to such return for the S&P 500 Index and the S&P Composite 1500 Property & Casualty Insurance Index for the five-year period commencing December 31, 2019 and ending December 31, 2024, assuming $100 was invested on December 31, 2019.
Each measurement point on the graph below represents the cumulative shareholder return as measured by the last sale price at the end of each calendar year during the period from January 1, 2019 through December 31, 2023.
Each measurement point on the graph below represents the cumulative shareholder return as measured by the last sale price at the end of each calendar year during the period from January 1, 2020 through December 31, 2024.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND NUMBER OF HOLDERS Our common shares are listed on the NYSE under the symbol “RNR.” On February 14, 2024, there were 105 holders of record of our common shares.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND NUMBER OF HOLDERS Our common shares are listed on the NYSE under the symbol “RNR.” On February 7, 2025, there were 101 holders of record of our common shares.
As depicted in the graph below, during this period, the cumulative return was (1) 7.2% on our common shares; (2) 26.3% for the S&P 500 Index; (and (3) 10.9% for the S&P Composite 1500 Property & Casualty Insurance Industry Index.
As depicted in the graph below, during this period, the cumulative return was (1) 32.3% on our common shares; (2) 97.0% for the S&P 500 Index; and (3) 114.4% for the S&P Composite 1500 Property & Casualty Insurance Industry Index.
Our Board has authorized a share repurchase program in an aggregate amount of up to $500.0 million, which was last renewed on August 2, 2022. Unless terminated earlier by our Board, the program will expire when we have repurchased the full value of the shares authorized.
Our Board has authorized a share repurchase program, which was increased to an aggregate amount of up to $750.0 million on November 6, 2024 and renewed in an aggregate amount of up to $750.0 million on February 5, 2025. Unless terminated earlier by our Board, the program will expire when we have repurchased the full value of the shares authorized.
DIVIDENDS On February 6, 2024, RenaissanceRe’s Board approved a quarterly dividend of $0.39 per common share on its common shares. The dividend is payable on March 29, 2024, to shareholders of record on March 15, 2024.
DIVIDENDS On February 5, 2025, RenaissanceRe’s Board approved a quarterly dividend of $0.40 per common share on its common shares. The dividend is payable on March 31, 2025, to shareholders of record on March 14, 2025.
Removed
Total Shares Purchased Other Shares Purchased Shares Purchased Under Repurchase Program Dollar 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 $ 500,000 October 1 - 31, 2023 — $ — — $ — — $ — $ 500,000 November 1 - 30, 2023 2,265 $ 226.97 2,265 $ 226.97 — $ — $ 500,000 December 1 - 31, 2023 — $ — — $ — — $ — $ 500,000 Total 2,265 $ 226.97 2,265 $ 226.97 — $ — $ 500,000 During 2023, we did not repurchase common shares pursuant to our publicly announced share repurchase program.
Added
Total Shares Purchased Other Shares Purchased Shares Purchased Under Repurchase Program Dollar 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 $ 476,532 October 1 - 31, 2024 — $ — — $ — — $ — $ 476,532 November 1 - 30, 2024 (1) 580,804 $ 266.86 7,806 $ 264.07 572,998 $ 266.90 $ 597,067 December 1 - 31, 2024 1,175,396 $ 263.23 12 $ 286.15 1,175,384 $ 263.23 $ 287,671 Total 1,756,200 $ 264.43 7,818 $ 264.10 1,748,382 $ 264.43 $ 287,671 (1) On November 6, 2024, our Board approved a renewal of our authorized share repurchase program to an aggregate amount of up to $750.0 million.
Removed
At December 31, 2023, $500.0 million remained available for repurchase under the share repurchase program. In the future, we may authorize additional purchase activities under the currently authorized share repurchase program, increase the amount authorized under the share repurchase program, or adopt additional trading plans.
Added
During 2024, we repurchased 2,711,234 common shares at an aggregate cost of $677.6 million and an average price of $249.93 per common share. At December 31, 2024, $287.7 million remained available for repurchase under the share repurchase program.
Added
Subsequent to December 31, 2024 and through the period ended February 7, 2025, we repurchased 928,880 common shares at an aggregate cost of $227.7 million and an average price of $245.10 per common share.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

243 edited+77 added−73 removed160 unchanged
Biggest changeThe net negative impact on the underwriting result had a 0.5 percentage point impact on the consolidated combined ratio. 72 Underwriting Results by Segment Property Segment Below is a summary of the underwriting results and ratios for our Property segment: Year ended December 31, 2023 2022 Change (in thousands, except percentages) Gross premiums written $ 3,562,414 $ 3,734,241 $ (171,827) Net premiums written $ 2,967,309 $ 2,847,659 $ 119,650 Net premiums earned $ 3,090,792 $ 2,770,227 $ 320,565 Net claims and claim expenses incurred 799,905 2,044,771 (1,244,866) Acquisition expenses 600,127 547,210 52,917 Operational expenses 251,433 194,355 57,078 Underwriting income (loss) $ 1,439,327 $ (16,109) $ 1,455,436 Net claims and claim expenses incurred – current accident year $ 1,208,810 $ 2,250,512 $ (1,041,702) Net claims and claim expenses incurred – prior accident years (408,905) (205,741) (203,164) Net claims and claim expenses incurred – total $ 799,905 $ 2,044,771 $ (1,244,866) Net claims and claim expense ratio – current accident year 39.1 % 81.2 % (42.1) pts Net claims and claim expense ratio – prior accident years (13.2) % (7.4) % (5.8) pts Net claims and claim expense ratio – calendar year 25.9 % 73.8 % (47.9) pts Underwriting expense ratio 27.5 % 26.8 % 0.7 pts Combined ratio 53.4 % 100.6 % (47.2) pts Property Gross Premiums Written In 2023, our Property segment gross premiums written decreased by $171.8 million, or 4.6%, to $3.6 billion, compared to $3.7 billion in 2022.
Biggest changeYear ended December 31, 2023 2023 Large Loss Events (1) (in thousands) Net claims and claim expenses incurred $ (354,228) Assumed reinstatement premiums earned 46,534 Ceded reinstatement premiums earned (62) Earned (lost) profit commissions 9,130 Net negative impact on underwriting result (298,626) Redeemable noncontrolling interest 85,276 Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders $ (213,350) (1) “2023 Large Loss Events” includes: Hurricane Otis and Storm Ciaran in October and November 2023, the wildfires in Hawaii in August 2023 and Hurricane Idalia, a series of large, severe weather events in Texas and other southern and central U.S. states in June 2023, the earthquakes in southern and central Turkey in February 2023, Cyclone Gabrielle, the flooding in northern New Zealand in January and February 2023, and various wind and thunderstorm events in both the Southern and Midwest U.S. during March 2023, and certain aggregate loss contracts triggered during 2023. 72 Underwriting Results by Segment Property Segment Below is a summary of the underwriting results and ratios for our Property segment: Year ended December 31, 2024 2023 Change (in thousands, except percentages) Gross premiums written $ 4,823,731 $ 3,562,414 $ 1,261,317 Net premiums written $ 3,833,636 $ 2,967,309 $ 866,327 Net premiums earned $ 3,850,352 $ 3,090,792 $ 759,560 Net claims and claim expenses incurred 1,141,726 799,905 341,821 Acquisition expenses 758,554 600,127 158,427 Operational expenses 302,360 251,433 50,927 Underwriting income (loss) $ 1,647,712 $ 1,439,327 $ 208,385 Net claims and claim expenses incurred – current accident year $ 1,960,578 $ 1,208,810 $ 751,768 Net claims and claim expenses incurred – prior accident years (818,852) (408,905) (409,947) Net claims and claim expenses incurred – total $ 1,141,726 $ 799,905 $ 341,821 Net claims and claim expense ratio – current accident year 50.9 % 39.1 % 11.8 pts Net claims and claim expense ratio – prior accident years (21.2) % (13.2) % (8.0) pts Net claims and claim expense ratio – calendar year 29.7 % 25.9 % 3.8 pts Underwriting expense ratio 27.5 % 27.5 % — pts Combined ratio 57.2 % 53.4 % 3.8 pts Property Gross Premiums Written In 2024, our Property segment gross premiums written increased by $1.3 billion, or 35.4%, to $4.8 billion, compared to $3.6 billion in 2023.
The re-estimated incurred claims and claim expenses as of December 31 of subsequent years, represent our revised estimates as reported as of those dates.
The re-estimated incurred claims and claim expenses as of December 31 of subsequent years, represent our revised estimates as reported as of those dates.
A valuation allowance against net deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized.
A valuation allowance against net deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to net deferred tax assets will not be realized.
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 we sell.
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 we sell.
Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for more information on the risks we insure and reinsure, the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, prior year development of the reserve for claims and claim expenses, analysis of our incurred and paid claims development and claims duration information for each of our Property and Casualty and Specialty segments.
Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for more information on the risks we insure and reinsure, the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, prior year development of the reserve for claims and claim expenses, analysis of our incurred and paid claims development and claims duration information for each of our Property and Casualty and Specialty segments.
However, the geographic distribution of pre-tax income or loss can vary significantly between periods for a variety of reasons, including the business mix and geographic location of the balance sheet on which net premiums are written and earned, the size and nature of net claims and claim expenses incurred, the amount and geographic location of operating expenses, net investment income and net realized and unrealized gains (losses) on investments and the amount of specific adjustments to determine the income tax basis in each of our operating jurisdictions.
However, the geographic distribution of pre-tax income or loss can vary significantly between periods for a variety of reasons, including the business mix and geographic location of the balance sheet on which net premiums are written and earned, the size and nature of net claims and claim expenses incurred, the amount and geographic location of operational expenses, net investment income and net realized and unrealized gains (losses) on investments and the amount of specific adjustments to determine the income tax basis in each of our operating jurisdictions.
Except for Top Layer, which is recorded on a current quarter basis, equity in earnings of other ventures is recorded one quarter in arrears. The carrying value of these investments on our consolidated balance sheets, individually or in the aggregate, may differ from the realized value we may ultimately attain, perhaps significantly so.
Except for Top Layer, which is recorded on a current quarter basis, equity in earnings (losses) of other ventures is recorded one quarter in arrears. The carrying value of these investments on our consolidated balance sheets, individually or in the aggregate, may differ from the realized value we may ultimately attain, perhaps significantly so.
We also caution that the above sensitivity analysis is not used by management in developing our reserve estimates and is also not used by management in managing the business. 63 Premiums and Related Expenses Premiums are recognized as income, net of any applicable reinsurance or retrocessional coverage purchased, over the terms of the related contracts and policies.
We also caution that the above sensitivity analysis is not used by management in developing our reserve estimates and is also not used by management in managing the business. Premiums and Related Expenses Premiums are recognized as income, net of any applicable reinsurance or retrocessional coverage purchased, over the terms of the related contracts and policies.
Amounts are computed by pro rata methods based on statistical data or reports received from ceding companies. Reinstatement premiums are estimated after the occurrence of a loss and are recorded in accordance with the contract terms based upon paid losses and case reserves. Reinstatement premiums are earned when written.
Amounts are computed by pro rata methods based on statistical data or reports received from ceding companies. Reinstatement premiums are estimated after the occurrence of a significant loss and are recorded in accordance with the contract terms based upon paid losses and case reserves. Reinstatement premiums are earned when written.
For example, we could be liable for exposures we do not currently believe are covered under our contracts. These changes could result in significantly larger changes to reserves for claims and claim expenses, net income and shareholders’ equity than those noted above, and could be recorded across multiple periods.
For example, we could be liable for exposures we do not currently believe are covered under our contracts. These changes could result in significantly larger changes to our reserves for claims and claim expenses, net income (loss) and shareholders’ equity than those noted above, and could be recorded across multiple periods.
In particular, we have invested heavily to understand the influence of climate change on the weather and its impact on the risks that we take. We believe that the RenaissanceRe Risk 100 Sciences team gives us an advantage in properly reflecting the evolving phenomenon of climate change in our models as compared to commercially available models.
In particular, we have invested heavily to understand the influence of climate change on the weather and its impact on the risks that we take. We believe that our RenaissanceRe Risk Sciences team gives us an advantage in properly reflecting the evolving phenomenon of climate change in our models as compared to commercially available models.
Premiums written are based on contract and policy terms and include estimates based on information received from both insureds and ceding companies. Subsequent revisions to premium estimates are recorded in the period in which they are determined. Unearned premiums represents the portion of premiums written that relate to the unexpired terms of contracts and policies in force.
Premiums written are based on contract and policy terms and include estimates based on information received from both insureds and ceding 63 companies. Subsequent revisions to premium estimates are recorded in the period in which they are determined. Unearned premiums represents the portion of premiums written that relate to the unexpired terms of contracts and policies in force.
Insurers rated “AA-” by Fitch are believed to have a very low expectation of ceased or interrupted payments and very strong capital to meet policyholder obligations. Lloyd’s Overall Market Rating A.M. Best, S&P and Fitch have each assigned a financial strength rating to the Lloyd’s overall market.
Insurers rated “AA-” by Fitch are believed to have a very low expectation of ceased or interrupted payments and very strong capital to meet policyholder obligations. 94 Lloyd’s Overall Market Rating A.M. Best, S&P and Fitch have each assigned a financial strength rating to the Lloyd’s overall market.
Fair value is defined under accounting guidance currently applicable to us 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.
Fair value is defined under accounting guidance currently applicable to us as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date.
These changes could result in significantly larger changes to our estimated incurred claims and claim expenses, net income and shareholders’ equity than those noted above, and could be recorded across multiple periods. The inflationary outlook is also highly uncertain and could result in larger changes than those depicted above.
These changes could result in significantly larger changes to our estimated incurred claims and claim expenses, net income (loss) and shareholders’ equity than those noted above, and could be recorded across multiple periods. The inflationary outlook is also highly uncertain and could result in larger changes than those depicted above.
In accident years where our current estimates are lower than our initial 61 estimates, we have experienced favorable development while accident years where our current estimates are higher than our original estimates indicate adverse development. The table is presented on a net basis and, therefore, includes the benefit of reinsurance recoverable.
In accident years where our current estimates are lower than our initial estimates, we have experienced favorable development while accident years where our current estimates are higher than our original estimates indicate adverse development. The table is presented on a net basis and, therefore, includes the benefit of reinsurance recoverable.
From time to time, we may reevaluate the duration of our portfolio in light of the duration of our liabilities and market conditions. The value of our fixed maturity investments will fluctuate with changes in the interest rate environment and when changes occur in economic conditions or the investment markets.
From time to time, we may reevaluate the duration of our portfolio in light of the duration of our liabilities and market conditions. 91 The value of our fixed maturity investments will fluctuate with changes in the interest rate environment and when changes occur in economic conditions or the investment markets.
The estimation of written premiums may be affected by early cancellation, election of contract provisions for cut-off and return of unearned premiums or other contract disruptions. The time lag involved in the process of reporting premiums is shorter than the lag in reporting losses.
The estimation of written premiums may be affected by early cancellation, election of contract provisions for cut-off and return of unearned premiums or other contract disruptions. The time lag involved in the process of reporting premiums is typically shorter than the lag in reporting losses.
Reinsurance recoverable on dual trigger reinsurance contracts require us to estimate our ultimate losses applicable to these contracts as well as estimate the ultimate amount of insured industry 64 losses that will be reported by the applicable statistical reporting agency, as per the contract terms.
Reinsurance recoverable on dual trigger reinsurance contracts require us to estimate our ultimate losses applicable to these contracts as well as estimate the ultimate amount of insured industry losses that will be reported by the applicable statistical reporting agency, as per the contract terms.
A combined ratio below 100% indicates profitable underwriting prior to the consideration of investment income. A combined ratio over 100% 54 indicates unprofitable underwriting prior to the consideration of investment income. We also discuss our net claims and claim expense ratio on a current accident year basis and a prior accident years basis.
A combined ratio below 100% indicates profitable underwriting prior to the consideration of investment income. A combined ratio over 100% indicates unprofitable underwriting prior to the consideration of investment income. We also discuss our net claims and claim expense ratio on a current accident year basis and a prior accident years basis.
Our expenses primarily consist of: (1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; (2) acquisition costs, which typically represent a percentage of the premiums we write; (3) operating expenses, which primarily consist of personnel expenses, rent and other expenses; (4) corporate expenses, which include certain executive, legal and consulting expenses, costs for research and development, transaction and integration-related expenses, and other miscellaneous costs, including those associated with operating as a publicly traded company; and (5) interest and dividends related to our debt and preference shares.
Our expenses primarily consist of: (1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; (2) acquisition costs, which typically represent a percentage of the premiums we write; (3) operational expenses, which primarily consist of personnel expenses, rent and other expenses; (4) corporate expenses, which include certain executive, legal and consulting expenses, costs for research and development, transaction and integration-related expenses, and other miscellaneous costs, including those associated with operating as a publicly traded company; and (5) interest and dividends related to our debt, preference shares and common shares.
We are uniquely positioned to write a variety of risks, leveraging the enhancements we have made over the last several years to our risk and capital management technology and underwriting expertise to cover additional lines of business.
We are uniquely positioned to write a variety of risks, leveraging the enhancements we have made over the last several years to our risk and capital management technology and underwriting expertise to cover 96 additional lines of business.
As development experience for claims and claim expenses on prior accident years becomes credible, the Bornhuetter-Ferguson actuarial method is 62 generally selected which places greater weight on this reported experience as it develops.
As development experience for claims and claim expenses on prior accident years becomes credible, the Bornhuetter-Ferguson actuarial method is generally selected which places greater weight on this reported experience as it develops.
Statutory Requirements” in our “Notes to the Consolidated Financial Statements.” Liquidity and Cash Flows Holding Company Liquidity RenaissanceRe’s principal uses of liquidity are: (1) common share related transactions including dividend payments to our common shareholders and common share repurchases, (2) preference share related transactions including dividend payments to our preference shareholders and preference share redemptions, (3) interest and principal payments on debt, (4) capital investments in our subsidiaries, (5) acquisition of, or investments in, new or existing companies or books of business of other companies, such as the Validus Acquisition, and (6) certain corporate and operating expenses.
Statutory Requirements” in our “Notes to the Consolidated Financial Statements.” Liquidity and Cash Flows Holding Company Liquidity RenaissanceRe’s principal uses of liquidity are: (1) common share related transactions including dividend payments to our common shareholders and common share repurchases, (2) preference share related transactions including dividend payments to our preference shareholders and preference share redemptions, (3) interest and principal payments on debt, (4) capital investments in our subsidiaries, (5) acquisition of, or investments in, new or existing companies or books of business of other companies, such as the Validus Acquisition, and (6) certain corporate and operational expenses.
Revenues and Expenses Our revenues are principally derived from three sources: (1) net premiums earned from the reinsurance and insurance policies we sell; (2) net investment income and net realized and unrealized gains from the investment of our capital funds and the investment of the cash we receive on the policies which we sell; and (3) fees received from our joint ventures, managed funds and structured reinsurance products, which are primarily reflected in redeemable noncontrolling interest or as an offset to acquisition or operating expenses.
Revenues and Expenses Our revenues are principally derived from three sources: (1) net premiums earned from the reinsurance and insurance policies we sell; (2) net investment income and net realized and unrealized gains from the investment of our capital funds and the investment of the cash we receive on the policies which we sell; and (3) fees received from our joint ventures, managed funds and structured reinsurance products, which are primarily reflected in redeemable noncontrolling interest or as an offset to acquisition or operational expenses.
For incurred accident year claims and claim expenses denominated in currencies other than USD, we have used the current year-end balance sheet foreign exchange rate for all periods provided, thereby eliminating the effects of changes in foreign currency translation rates from the incurred accident year claims development information included in the table below. 59 The following table details our Property segment incurred claims and claim expenses, net of reinsurance, as of December 31, 2023.
For incurred accident year claims and claim expenses denominated in currencies other than USD, we have used the current year-end balance sheet foreign exchange rate for all periods provided, thereby eliminating the effects of changes in foreign currency translation rates from the incurred accident year claims development information included in the table below. 59 The following table details our Property segment incurred claims and claim expenses, net of reinsurance, as of December 31, 2024.
(2) RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s outstanding issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements.
(2) RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements.
Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts the Company’s financial results.
Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts our financial results.
We establish IBNR using actuarial techniques and expert judgement to represent the anticipated cost of claims which have not been reported to us yet or where we anticipate increased reporting. Our reserving committee, which includes members of our senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our audited consolidated financial statements.
We establish IBNR using actuarial techniques and expert judgment to represent the anticipated cost of claims which have not been reported to us yet or where we anticipate increased reporting. Our reserving committee, which includes members of our senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our audited consolidated financial statements.
Such temporary differences are primarily due to net operating loss and capital loss carryforwards and GAAP versus tax basis accounting differences relating to unearned premiums, reserves for claims and claim expenses, deferred finance charges, deferred underwriting results, accrued expenses, investments, value of in-force business, VOBA, deferred acquisition expenses, intangible assets, amortization and depreciation.
Such temporary differences are primarily due to net operating loss and capital loss carryforwards and GAAP versus tax basis accounting differences relating to unearned premiums, reserves for claims and claim expenses, deferred finance charges, deferred underwriting results, accrued expenses, investments, value of in-force business, VOBA, deferred acquisition expenses, intangible assets, and amortization and depreciation, among others.
Acquisition of Validus” in our “Notes to the Consolidated Financial Statements” for additional information related to the acquisition of Validus. Cash flows provided by financing activities.
Acquisition of Validus” in our “Notes to the Consolidated Financial Statements” for additional information related to the acquisition of Validus. 87 Cash flows provided by financing activities.
In addition, we have included historical incurred claims and claim expenses development information related to Platinum, TMR and Validus in the table below.
In addition, we have included historical incurred claims and claim expenses development information related to Platinum, TMR and Validus in the 61 table below.
Our most recent estimates as reported at December 31, 2023 differ from our initial accident year estimates and demonstrate that our most recent estimate of incurred claims and claim expenses are reasonably likely to vary from our initial estimate, perhaps significantly. Changes in this estimate will be recorded in the period in which they occur.
Our most recent estimates as reported at December 31, 2024 differ from our initial accident year estimates and demonstrate that our most recent estimate of incurred claims and claim expenses are reasonably likely to vary from our initial estimate, perhaps significantly. Changes in this estimate will be recorded in the period in which they occur.
Sensitivity Analysis The table below shows the impact on our reserve for claims and claim expenses, net income (loss) and shareholders’ equity as of and for the year ended December 31, 2023 of a reasonable range of possible outcomes associated with our estimates of gross ultimate losses for claims and claim expenses incurred within our Property segment.
Sensitivity Analysis The table below shows the impact on our reserve for claims and claim expenses, net income (loss) and shareholders’ equity as of and for the year ended December 31, 2024 of a reasonable range of possible outcomes associated with our estimates of gross ultimate losses for claims and claim expenses incurred within our Property segment.
Our most recent estimates as reported at December 31, 2023 differ from our initial accident year estimates and demonstrates that our initial estimate of incurred claims and claim expenses are reasonably likely to vary from our most recent estimate, perhaps significantly. Changes in this estimate will be recorded in the period in which they occur.
Our most recent estimates as reported at December 31, 2024 differ from our initial accident year estimates and demonstrates that our initial estimate of incurred claims and claim expenses are reasonably likely to vary from our most recent estimate, perhaps significantly. Changes in this estimate will be recorded in the period in which they occur.
For example, our internal investment structures and cash pooling arrangements among the Company and certain of our subsidiaries help to efficiently facilitate capital and liquidity movements. In the aggregate, our principal operating subsidiaries have historically produced sufficient cash flows to meet their expected claims payments and operational expenses and to provide dividend payments to us.
For example, our internal investment structures and cash pooling arrangements among RenaissanceRe and certain of our subsidiaries help to efficiently facilitate capital and liquidity movements. In the aggregate, our principal operating subsidiaries have historically produced sufficient cash flows to meet their expected claims payments and operational expenses and to provide dividend payments to us.
The fair value of our fund investments, which include private equity funds, private credit funds and hedge funds, is recorded on our consolidated balance sheet in other investments, and is generally established on the basis of the net asset value per share (or its equivalent), determined by the managers of these investments in accordance with the applicable governing documents.
The fair value of our fund investments, which include private equity funds, private credit funds and hedge funds, is recorded on our consolidated balance sheets in other investments, and is generally established on the basis of the net asset value per share (or its equivalent), determined by the managers of these investments in accordance with the applicable governing documents.
In addition, if we were to fail to comply with certain covenants in our debt agreements, we may have to pledge additional collateral. 85 Letter of Credit and Revolving Credit Facilities We and certain of our subsidiaries, joint ventures, and managed funds maintain secured and unsecured revolving credit facilities and letter of credit facilities that provide liquidity and allow us to satisfy certain collateral requirements.
In addition, if we were to fail to comply with certain covenants in our debt agreements, we may have to pledge additional collateral. 84 Letter of Credit and Revolving Credit Facilities We and certain of our subsidiaries, joint ventures, and managed funds maintain secured and unsecured revolving credit facilities and letter of credit facilities that provide liquidity and allow us to satisfy certain collateral requirements.
Notwithstanding the many uncertainties and challenges that lie ahead, we believe that our track record of responding to industry events, differentiated risk management and client service capabilities, and access to diverse sources of both capital and risk position us favorably in the current environment.
Notwithstanding the many uncertainties and challenges that lie ahead, we believe that our track record of responding to industry events, differentiated risk management and client service capabilities, coupled with access to diverse sources of both capital and risk position us favorably in the current environment.
We do not calculate a range of estimates and do not discount any of our reserves for claims and claim expenses. We use this point estimate, along with paid claims and case reserves, to record our best estimate of additional case reserves and IBNR in our consolidated financial statements.
We do not calculate a range of estimates and do not discount any of our reserves for claims and claim expenses. We use this point estimate, along with paid claims and case reserves, to record our best estimate of ACR and IBNR in our consolidated financial statements.
However, in some circumstances, RenaissanceRe may determine it is necessary or advisable to contribute capital to our subsidiaries, or may be contractually required to contribute capital to our joint ventures or managed funds. For example, in 2023, RenaissanceRe contributed capital to RenaissanceRe Specialty U.S. to support growth in premiums.
However, in some circumstances, RenaissanceRe may determine it is necessary or advisable to contribute capital to our subsidiaries, or may be contractually required to contribute capital to our subsidiaries, joint ventures or managed funds. For example, in 2024, RenaissanceRe contributed capital to RenaissanceRe Specialty U.S. to support growth in premiums.
Actual final fund valuations may differ, perhaps materially, from our estimates and these differences are recorded in our consolidated statement of operations in the period in which they are reported to us as a change in estimate.
Actual final fund valuations may differ, perhaps materially, from our estimates and these differences are recorded in our consolidated statements of operations in the period in which they are reported to us as a change in estimate.
The following filed income tax returns are open for examination with the applicable tax authorities: tax years 2018 through 2022 with the U.S.; 2019 through 2022 with Ireland; 2021 through 2022 with the U.K.; 2019 through 2022 with Singapore; 2019 through 2022 with Switzerland; 2019 through 2022 with Australia; 2019 through 2022 with Canada; and 2018 through 2022 with Luxembourg.
The following filed income tax returns are open for examination with the applicable tax authorities: tax years 2018 through 2023 with the U.S.; 2020 through 2023 with Ireland; 2022 through 2023 with the U.K.; 2020 through 2023 with Singapore; 2021 through 2023 with Switzerland; 2020 through 2023 with Australia; 2020 through 2023 with Canada; and 2019 through 2023 with Luxembourg.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is a discussion and analysis of our results of operations for 2023 compared to 2022, as well as our liquidity and capital resources at December 31, 2023.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is a discussion and analysis of our results of operations for 2024 compared to 2023, as well as our liquidity and capital resources at December 31, 2024.
(except RREAG, UK Branch), Switzerland, the RREAG, US Branch, and the Singapore and Luxembourg operations of Validus have historically produced GAAP taxable losses and we currently do not believe it is more likely than not that we will be able to recover the predominant amount of our net deferred tax assets in these jurisdictions.
(except RREAG, UK Branch), Switzerland, the RREAG, US Branch, and Luxembourg have historically produced GAAP taxable losses, and we currently do not believe it is more likely than not that we will be able to recover the predominant amount of our net deferred tax assets in these jurisdictions.
A+ A+ — — RenaissanceRe Europe AG A+ A+ — — RenaissanceRe Specialty U.S. Ltd. A+ A+ — — Top Layer Reinsurance Ltd. A+ AA — — Vermeer Reinsurance Ltd. A — — — Validus Reinsurance Ltd.
A+ A+ — — RenaissanceRe Europe AG A+ A+ — — RenaissanceRe Specialty U.S. Ltd. A+ A+ — — Top Layer Reinsurance Ltd. A+ AA — — Vermeer Reinsurance Ltd.
The increase in incurred claims and claim expenses for the 2018 accident year is due to reported losses generally coming in higher than expected on attritional net claims and claim expenses.
The increase in incurred claims and claim expenses for the 2019 accident year is due to reported losses generally coming in higher than expected on attritional net claims and claim expenses.
The valuation allowance assessment is performed separately in each taxable jurisdiction based on all available information including projections of future GAAP taxable income from each tax-paying component in each tax jurisdiction. We have unrecognized tax benefits of $Nil as of December 31, 2023 (2022 - $Nil).
The valuation allowance assessment is performed separately in each taxable jurisdiction based on all available information including projections of future GAAP taxable income from each tax-paying component in each tax jurisdiction. 67 We have unrecognized tax benefits of $Nil as of December 31, 2024 (2023 - $Nil).
In comparison, the 2018 accident year has developed adversely compared to our initial estimates of incurred claims and claim expenses and our current estimates are higher than our initial estimates.
In comparison, the 2019 accident year has developed adversely compared to our initial estimates of incurred claims and claim expenses and our current estimates are higher than our initial estimates.
Interest and penalties related to unrecognized tax benefits, would be recognized in income tax expense. At December 31, 2023, interest and penalties accrued on unrecognized tax benefits were $Nil (2022 - $Nil).
Interest and penalties related to unrecognized tax benefits, would be recognized in income tax expense. At December 31, 2024, interest and penalties accrued on unrecognized tax benefits were $Nil (2023 - $Nil).
(4) The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents Syndicate 1458’s financial strength rating. A.M. Best The outlook for all of our A.M. Best ratings is stable. “A+” is the second highest designation of A.M. Best’s rating levels.
(3) The Moody’s ratings represent the insurer’s financial strength rating. (4) The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents Syndicate 1458’s financial strength rating. A.M. Best The outlook for all of our A.M. Best ratings is stable. “A+” is the second highest designation of A.M. Best’s rating levels.
Therefore, the amount of net claims paid in any one year is not necessarily related to the amount of net claims and claims expenses incurred in that year, as reported in the consolidated statement of operations. 84 We expect that our liquidity needs for the next 12 months will be met by our cash receipts from operations.
Therefore, the amount of net claims paid in any one year is not necessarily related to the amount of net claims and claim expenses incurred in that year, as reported in the consolidated statements of operations. We expect that our liquidity needs for the next 12 months will be met by our cash receipts from operations.
Best assess companies’ ERM practices, which is an opinion on the many critical dimensions of risk that determine overall creditworthiness.
Best assess and score companies’ ERM practices, which is an opinion on the many critical dimensions of risk that determine overall creditworthiness.
In addition, the level of our additional case reserves and IBNR reserves has a significant impact on reinsurance recoverable. These factors can impact the amount and timing of the reinsurance recoverable to be recorded. The majority of the balance we have accrued as recoverable will not be due for collection until some point in the future.
In addition, the level of our ACR and IBNR reserves has a significant impact on reinsurance recoverable. These factors can impact the amount and timing of the reinsurance recoverable to be recorded. 64 The majority of the balance we have accrued as recoverable will not be due for collection until some point in the future.
We are also subject to taxes in certain jurisdictions in which we operate. Historically, the majority of our income has been earned in Bermuda, which did not have a corporate income tax, so the tax impact to our operations has been minimal.
We are also subject to taxes in certain jurisdictions in which we operate. Historically, the majority of our income has been earned in Bermuda, which has not had a corporate income tax, so the tax impact to our operations has been minimal.
The current accident year net claims and claim expense ratio is calculated by taking current accident year net claims and claim expenses incurred, divided by net premiums earned. The prior accident years net claims and claim expense ratio is calculated by taking prior accident years net claims and claim expenses incurred, divided by net premiums earned.
The current accident year net claims and claim expense ratio is calculated by taking current accident year net claims and claim expenses incurred, divided by net premiums earned.
The following table details our Casualty and Specialty segment incurred claims and claim expenses, net of reinsurance, as of December 31, 2023.
The following table details our Casualty and Specialty segment incurred claims and claim expenses, net of reinsurance, as of December 31, 2024.
We recognize the change in unrealized gains and losses arising from changes in fair value in our 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.
We recognize the change in unrealized gains and losses arising from changes in fair value in our consolidated statements of operations. FASB ASC Topic 820, Fair Value Measurement prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value.
(2) The S&P ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. RenaissanceRe has been assigned a “Very Strong” ERM score by S&P. (3) The Moody’s ratings represent the insurer’s financial strength rating.
RenaissanceRe has been assigned a “Very Strong” ERM score by A.M. Best. (2) The S&P ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. RenaissanceRe has been assigned a “Very Strong” ERM score by S&P.
The impact on net income (loss) and shareholders’ equity assumes no increase or decrease in reinsurance recoveries, loss related premium or profit commission, or redeemable noncontrolling interest.
The impact on net income (loss) and shareholders’ equity assumes no increase or decrease in reinsurance recoveries, loss related premium or profit commission, income tax benefit (expense), or redeemable noncontrolling interest.
The impact on net income (loss) and shareholders’ equity assumes no increase or decrease in reinsurance recoveries, loss related premium or profit commission, or redeemable noncontrolling interest.
The impact on net income (loss) and shareholders’ equity assumes no increase or decrease in reinsurance recoveries, loss related premium or profit commission, income tax benefit (expense), or redeemable noncontrolling interest.
We also have an allocation to publicly traded equities reflected on our consolidated balance sheet as equity investments and an allocation to other investments (including catastrophe bonds, fund investments, term loans and direct private equity investments). 92 The following table summarizes the composition of our investment portfolio, including the amortized cost, fair value, credit ratings and effective yields.
We also have an allocation to publicly traded equities reflected on our consolidated balance sheet as equity investments and an allocation to other investments (including catastrophe bonds, fund investments, term loans and direct private equity investments). 90 Weighted Average Effective Yield and Credit Rating The following table summarizes the composition of our investment portfolio, including the amortized cost, fair value, credit ratings and effective yields.
Short term investments are managed as part of our investment portfolio and have a maturity of one year or less when purchased. Short term investments are carried at fair value. The duration of our fixed maturity investments and short term investments at December 31, 2023 was 2.9 years (2022 - 2.7 years).
Short term investments are managed as part of our investment portfolio and have a maturity of one year or less when purchased. Short term investments are carried at fair value. The duration of our fixed maturity investments and short term investments at December 31, 2024 was 3.1 years (2023 - 2.9 years).
Rating organizations continually review the financial positions of our principal operating subsidiaries and joint ventures and ratings may be revised or revoked by the agencies which issue them. Additionally, rating organizations may change their rating methodology, which could have a material impact on our financial strength ratings. In addition, S&P and A.M.
Rating organizations continually review the financial positions of our principal operating subsidiaries and joint ventures and ratings may be revised or revoked by the agencies which issue them. Additionally, rating organizations may change their capital models and rating methodologies, which could have a material impact on our ratings and business. In addition, S&P and A.M.
The financial risks to policy holders of syndicates within the Lloyd’s market are partially mutualized through the Lloyd’s Central Fund, to which all underwriting members contribute.
The financial risks to policyholders of syndicates within the Lloyd’s market are partially mutualized through the Lloyd’s Central Fund, to which all underwriting members contribute.
Our claims and claim expense reserves are a combination of case reserves, additional case reserves, or ACR, and incurred but not reported losses and incurred but not enough reported losses, collectively referred to as IBNR. Case reserves are losses reported to us by insureds and ceding companies, but which have not yet been paid.
Our reserve for claims and claim expense is a combination of case reserves, ACR, and incurred but not reported losses and incurred but not enough reported losses, collectively referred to as IBNR. Case reserves are losses reported to us by insureds and ceding companies, but which have not yet been paid.
We have committed capital to direct private equity investments, fund investments, term loans and investments in other ventures of $3.6 billion, of which $2.0 billion has been contributed at December 31, 2023 (2022 - $2.9 billion and $1.7 billion, respectively). Our remaining commitments to these investments at December 31, 2023 totaled $1.6 billion (2022 - $1.2 billion).
We have committed capital to direct private equity investments, fund investments, term loans and investments in other ventures of $4.5 billion, of which $2.5 billion has been contributed at December 31, 2024 (2023 - $3.6 billion and $2.0 billion, respectively). Our remaining commitments to these investments at December 31, 2024 totaled $2.0 billion (2023 - $1.6 billion).
RenaissanceRe has been assigned an ERM score of “Very Strong” from each of these agencies, which is the highest ERM score assigned. 96 The financial strength ratings of our principal operating subsidiaries and joint ventures and the ERM score of RenaissanceRe as of February 14, 2024 are presented below. A.M.
RenaissanceRe has been assigned an ERM score of “Very Strong” from each of these agencies, which is the highest ERM score assigned. 93 The financial strength ratings of our principal operating subsidiaries and joint ventures and the ERM score of RenaissanceRe as of February 7, 2025 are presented below. A.M.
See “Note on Forward-Looking Statements.” For a discussion and analysis of our results of operations for 2022 compared to 2021, please refer to the disclosures set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 50-97 of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 8, 2023.
See “Note on Forward-Looking Statements.” For a discussion and analysis of our results of operations for 2023 compared to 2022, please refer to the disclosures set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 51-102 of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024.
At December 31, 2023, the funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities totaled $2.9 billion (2022 – $2.0 billion). At December 31, 2023, we had $4.6 billion of short term investments (2022 – $4.7 billion).
At December 31, 2024, the funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities totaled $3.2 billion (2023 – $2.9 billion). At December 31, 2024, we had $4.5 billion of short term investments (2023 – $4.6 billion).
The reinsurers with the three largest balances accounted for 17.6%, 14.3% and 8.7%, respectively, of our reinsurance recoverable balance at December 31, 2023 (2022 - 20.8%, 7.0% and 5.4%, respectively). The provision for current expected credit losses recorded against reinsurance recoverable was $13.3 million at December 31, 2023 (2022 - $12.2 million).
The reinsurers with the three largest balances accounted for 12.6%, 11.0% and 8.3%, respectively, of our reinsurance recoverable balance at December 31, 2024 (2023 - 17.6%, 14.3% and 8.7%, respectively). The provision for current expected credit losses recorded against reinsurance recoverable was $11.7 million at December 31, 2024 (2023 - $13.3 million).
Impacting the Property segment underwriting result and combined ratio in 2023 were the 2023 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $298.1 million and added 10.5 percentage points to its combined ratio.
In comparison, 2023 was impacted by the 2023 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $298.1 million and added 10.5 percentage points to its combined ratio.
At December 31, 2023, our non-investment grade and not-rated fixed maturity investments totaled $1.3 billion or 6.1% of our fixed maturity investments (2022 - $1.2 billion or 8.7%, respectively). In addition, within our other investments category we have funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities.
At December 31, 2024, our non-investment grade and not-rated fixed maturity investments totaled $1.5 billion or 6.4% of our fixed maturity investments (2023 - $1.3 billion or 6.1%, respectively). In addition, within our other investments category we have funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities.
At December 31, 2023, our reinsurance recoverable balance was $5.3 billion (2022 - $4.7 billion). Of this amount, 60.6% is fully collateralized by our reinsurers, 38.5% is recoverable from reinsurers rated A- or higher by major rating agencies and 0.9% is recoverable from reinsurers rated lower than A- by major rating agencies (2022 - 47.2%, 52.0% and 0.8%, respectively).
At December 31, 2024, our reinsurance recoverable balance was $4.5 billion (2023 - $5.3 billion). Of this amount, 55.7% is fully collateralized by our reinsurers, 43.2% is recoverable from reinsurers rated A- or higher by major rating agencies and 1.0% is recoverable from reinsurers rated lower than A- by major rating agencies (2023 - 60.6%, 38.5% and 0.9%, respectively).
Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of each event, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things. 2023 Net Negative Impact The financial data below provides additional information detailing the net negative impact of the 2023 Large Loss Events on our consolidated financial statements in 2023.
Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of the events, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things. 2024 Net Negative Impact The financial data below provides additional information detailing the net negative impact of the 2024 Large Loss Events on our segment underwriting results and consolidated financial statements for the year ended December 31, 2024.
During 2023 our Casualty and Specialty segment also experienced net favorable development on prior accident years net claims and claim expenses of $41.7 million, or 1.0 percentage points, compared to $41.8 million, or 1.1 percentage points during 2022.
During 2024 our Casualty and Specialty segment also experienced net favorable development on prior accident years net claims and claim expenses of $32.5 million, or 0.5 percentage points, compared to $41.7 million, or 1.0 percentage point during 2023.
At December 31, 2023, the FAL required to support the underwriting activities at Lloyd’s through Syndicate 1458 was £730.9 million (2022 - £986.8 million).
At December 31, 2024, the FAL required to support the underwriting activities at Lloyd’s through Syndicate 1458 was £714.8 million (2023 - £730.9 million).
A A+ — — Validus Reinsurance (Switzerland) Ltd A A+ — — RenaissanceRe Syndicate 1458 — — — — Lloyd’s Overall Market Rating A AA- — AA- RenaissanceRe ERM Score Very Strong Very Strong — — (1) The A.M. Best ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating.
A — — — RenaissanceRe Syndicate 1458 — — — — Lloyd’s Overall Market Rating A+ AA- — AA- RenaissanceRe ERM Score Very Strong Very Strong — — (1) The A.M. Best ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating.
Each series of 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. For additional information related to the terms of our outstanding debt securities, see “Note 9. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements”.
Each series of 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. For additional information related to the terms of our outstanding debt securities, see “Note 9.
(2) Represents the fair value of Validus’ reserves for claims and claim expenses, net of reinsurance recoverables, acquired on November 1, 2023.
(2) Represents the fair value of Validus’ reserve for claims and claim expenses, net of reinsurance recoverable, acquired on November 1, 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

23 edited+2 added−1 removed23 unchanged
Biggest changeAs credit spreads widen, the fair value of our fixed maturity, short term investments, private credit funds and term loans decreases, and vice versa. 106 The following tables summarize the aggregate hypothetical increase (decrease) in fair value in our fixed maturity investments and short term investments, private credit funds and term loans, from an immediate parallel shift in credit spreads, assuming the treasury yield curve remains constant, reflecting the use of an immediate time horizon since this presents the worst-case scenario: Credit Spread Shift in Basis Points At December 31, 2023 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 26,854,484 $ 26,716,705 $ 26,560,861 $ 26,345,584 $ 26,130,307 Net increase (decrease) in fair value $ 293,623 $ 155,843 $ — $ (215,277) $ (430,554) Percentage change in fair value 1.1 % 0.6 % — % (0.8) % (1.6) % Credit Spread Shift in Basis Points At December 31, 2022 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 20,173,383 $ 20,041,143 $ 19,892,057 $ 19,720,191 $ 19,548,324 Net increase (decrease) in fair value $ 281,326 $ 149,086 $ — $ (171,866) $ (343,733) Percentage change in fair value 1.4 % 0.7 % — % (0.9) % (1.7) % We also employ credit derivatives in our investment portfolio to either assume credit risk or hedge our credit exposure.
Biggest changeAssuming treasury yields remain constant, credit spreads cannot be negative and an immediate time horizon, this presents the worst-case scenario: Credit Spread Shift in Basis Points At December 31, 2024 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 29,567,525 $ 29,469,996 $ 29,275,315 $ 29,049,045 $ 28,822,654 Net increase (decrease) in fair value $ 292,210 $ 194,681 $ — $ (226,270) $ (452,661) Percentage change in fair value 1.0 % 0.7 % — % (0.8) % (1.5) % 103 Credit Spread Shift in Basis Points At December 31, 2023 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 26,854,484 $ 26,716,705 $ 26,560,861 $ 26,345,584 $ 26,130,307 Net increase (decrease) in fair value $ 293,623 $ 155,843 $ — $ (215,277) $ (430,554) Percentage change in fair value 1.1 % 0.6 % — % (0.8) % (1.6) % We also employ credit derivatives in our investment portfolio to either assume credit risk or hedge our credit exposure.
For an immediate downward shift in credit spreads, we do not allow credit spreads to go negative in calculating the impact. The foregoing reflects the use of an immediate time horizon, since this presents the worst-case scenario. 107 Premiums Receivable and Reinsurance Recoverable Premiums receivable from ceding companies and reinsurance recoverable from our reinsurers are subject to credit risk.
For an immediate downward shift in credit spreads, we do not allow credit spreads to go negative in calculating the impact. The foregoing reflects the use of an immediate time horizon, since this presents the worst-case scenario. Premiums Receivable and Reinsurance Recoverable Premiums receivable from ceding companies and reinsurance recoverable from our reinsurers are subject to credit risk.
Interest Rate Risk Interest rate risk is the price sensitivity of a security to changes in interest rates. Our investment portfolio includes fixed maturity investments and short term investments, as well as private credit funds and term 102 loans which primarily invest in debt instruments. The fair values of these investments will fluctuate with changes in interest rates.
Interest Rate Risk Interest rate risk is the price sensitivity of a security to changes in interest rates. Our investment portfolio includes fixed maturity investments and short term investments, as well as private credit funds and term loans which primarily invest in debt instruments. The fair values of these investments will fluctuate with changes in interest rates.
We are primarily exposed to direct credit risk within our portfolios of fixed maturity and short term 105 investments, and through customers and reinsurers in the form of premiums receivable and reinsurance recoverable, respectively, as discussed below.
We are primarily exposed to direct credit risk within our portfolios of fixed maturity and short term investments, and through customers and reinsurers in the form of premiums receivable and reinsurance recoverable, respectively, as discussed below.
The management of credit risk in the investment portfolio is integrated in our credit risk governance framework and the management of credit exposures and concentrations within the investment portfolio are carried out in accordance with our risk policies, limits and risk concentrations as overseen by the Investment and Risk Management Committee of our Board.
The management of credit risk in the investment portfolio is integrated in our credit risk governance framework 102 and the management of credit exposures and concentrations within the investment portfolio are carried out in accordance with our risk policies, limits and risk concentrations as overseen by the Investment and Risk Management Committee of our Board.
Government related entities, and money market securities, none of our fixed-maturity and short-term investments exceeded 10% of shareholders’ equity at December 31, 2023. At December 31, 2023, our fixed maturity investments and short term investment portfolio had a dollar-weighted average credit quality rating of AA (2022 - AA).
Government related entities, and money market securities, none of our fixed maturity and short term investments exceeded 10% of shareholders’ equity at December 31, 2024 and 2023. At December 31, 2024, our fixed maturity investments and short term investment portfolio had a dollar-weighted average credit quality rating of AA (2023 - AA).
At December 31, 2023, the aggregate hypothetical impact of an immediate upward parallel shift in the treasury yield curve of 100 basis points would be a decrease in the market value of our net position in interest rate futures of approximately$38.1 million.
At December 31, 2024, the aggregate hypothetical impact of an immediate upward parallel shift in the treasury yield curve of 100 basis points would be a decrease in the market value of our net position in interest rate futures of approximately $105.0 million (2023 - $38.1 million).
The aggregate hypothetical market value impact from an immediate tightening in credit spreads of 100 basis points would cause a decrease in the market value of our net position in these derivatives of approximately $46.7 million at December 31, 2023.
The aggregate hypothetical market value impact from an immediate tightening in credit spreads of 100 basis points would cause a decrease in the market value of our net position in these derivatives of approximately $34.0 million at December 31, 2024 (2023 - $46.7 million).
Conversely, the aggregate hypothetical market value impact from an immediate widening in credit spreads of 100 basis points would cause an increase in the market value of our net position in these derivatives of approximately $46.7 million at December 31, 2023.
Conversely, the aggregate hypothetical market value impact from an immediate widening in credit spreads of 100 basis points would cause an increase in the market value of our net position in these derivatives of approximately $42.3 million at December 31, 2024 (2023 - $46.7 million).
The following table summarizes the ratings of our fixed maturity investments and short term investments and term loans (using ratings assigned by S&P and/or other rating agencies when S&P ratings were not available) as a percentage of the total of those investments as of the dates indicated: At December 31, 2023 2022 AAA 25.2 % 31.1 % AA 49.3 % 46.5 % A 10.4 % 8.1 % BBB 10.2 % 7.8 % Non-investment grade 4.6 % 6.0 % Not rated 0.3 % 0.5 % Total 100.0 % 100.0 % Private credit funds are not included in the table above.
The following table summarizes the ratings of our fixed maturity investments and short term investments and term loans (using ratings assigned by S&P and/or other rating agencies when S&P ratings were not available) as a percentage of the total of those investments as of the dates indicated: At December 31, 2024 2023 AAA 17.7 % 25.2 % AA 56.0 % 49.3 % A 10.6 % 10.4 % BBB 10.4 % 10.2 % Non-investment grade 5.1 % 4.6 % Not rated 0.2 % 0.3 % Total 100.0 % 100.0 % Private credit funds are not included in the table above.
Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information related to interest rate futures and swaps entered into by us.
Derivative Instruments” in our 100 “Notes to the Consolidated Financial Statements” for additional information related to interest rate futures entered into by us.
At December 31, 2023, we had outstanding credit derivatives of $1.1 billion in notional positions to hedge credit risk and $22.1 million in notional positions to assume credit risk, denominated in U.S. dollars (2022 - $953.4 million and $13.1 million, respectively). Refer to “Note 19.
At December 31, 2024, we had outstanding credit derivatives of $1.0 billion in notional positions to hedge credit risk and $Nil in notional positions to assume credit risk, denominated in U.S. dollars (2023 - $1.1 billion and $22.1 million, respectively). Refer to “Note 19.
We consider the impact of credit spread movements on the fair value of our fixed maturity and short term investments portfolio, private credit funds and term loans.
We consider the impact of credit spread movements on the fair value of our fixed maturity and short term investments portfolio, private credit funds and term loans. As credit spreads widen, the fair value of our fixed maturity, short term investments, private credit funds and term loans decreases, and vice versa.
If the underlying exposure of each commodity derivative held at December 31, 2023 depreciated by 10%, it would have resulted in a reduction in net income of approximately $25.8 million. If the underlying exposure of each commodity derivative held at December 31, 2023 appreciated by 10%, it would have resulted in an increase in net income of approximately $26.1 million.
If the underlying exposure of each commodity derivative held at December 31, 2024 depreciated by 10%, it would have resulted in a reduction in net income of approximately $68.7 million. If the underlying exposure of each commodity derivative held at December 31, 2024 appreciated by 10%, it would have resulted in an increase in net income of approximately $68.9 million.
Conversely, at December 31, 2023, the aggregate hypothetical impact of an immediate downward parallel shift in the treasury yield curve of 100 basis points would be an increase in the market value of our net position in interest rate futures of approximately $37.9 million. The foregoing reflects the use of an immediate time horizon, since this presents the worst-case scenario.
Conversely, at December 31, 2024, the aggregate hypothetical impact of an immediate downward parallel shift in the treasury yield curve of 100 basis points would be an increase in the market value of our net position in interest rate futures of approximately $105.0 million (2023 - $37.9 million).
The following table summarizes a hypothetical 10% increase or decline in the market value of our equity investments, direct private equity investments, private equity funds and hedge funds, holding all other factors constant, at the dates indicated: At December 31, 2023 2022 (in thousands, except for percentages) Equity investments $ 106,766 $ 625,058 Direct private equity investments 59,905 66,780 Private equity funds 433,788 315,323 Total carrying value of investments exposed to equity price risk $ 600,459 $ 1,007,161 Impact of a hypothetical 10% increase in the carrying value of investments exposed to equity price risk $ 60,046 $ 100,716 Impact of a hypothetical 10% decrease in the carrying value of investments exposed to equity price risk $ (60,046) $ (100,716) Commodity Price Risk Commodity price risk is the potential loss arising from changes in the market value of commodities.
The following table summarizes a hypothetical 10% increase or decline in the market value of our private equity funds, hedge 104 funds, direct private equity investments, and equity investments, holding all other factors constant, at the dates indicated: At December 31, 2024 2023 (in thousands, except for percentages) Private equity funds $ 609,105 $ 433,788 Hedge funds 338,248 — Direct private equity investments 211,866 59,905 Equity investments 117,756 106,766 Total carrying value of investments exposed to equity price risk $ 1,276,975 $ 600,459 Impact of a hypothetical 10% increase in the carrying value of investments exposed to equity price risk $ 127,698 $ 60,046 Impact of a hypothetical 10% decrease in the carrying value of investments exposed to equity price risk $ (127,698) $ (60,046) Commodity Price Risk Commodity price risk is the potential loss arising from changes in the market value of commodities.
At December 31, 2023, we had $5.9 billion of notional long positions and $2.7 billion of notional short positions of primarily U.S. Treasury futures contracts (2022 - $2.4 billion and $507.2 million, respectively). Refer to “Note 19.
At December 31, 2024, we had $7.1 billion of notional long positions and $3.1 billion of notional short positions of primarily U.S. treasury and non-US government bond futures contracts (2023 - $5.9 billion and $2.7 billion, respectively). Refer to “Note 19.
In addition, certain of our entities have, or have had, non-U.S. dollar functional currencies. As a result, we may experience foreign exchange gains and losses in our consolidated financial statements.
We routinely write a portion of our business in currencies other than U.S. dollars and invest a portion of our cash and investment portfolio in those currencies. In addition, certain of our entities have, or have had, non-U.S. dollar functional currencies. As a result, we may experience foreign exchange gains and losses in our consolidated financial statements.
As of December 31, 2023 the total notional amount of commodity contracts was $255.7 million (2022 - $Nil), and the aggregate fair value of these contracts was a net liability position of $1.1 million (2022 - $Nil).
At December 31, 2024 the total notional amount of commodity contracts was $684.8 million (2023 - $255.7 million), and the aggregate fair value of these contracts was a net asset position of $6.4 million (2023 - net liability position of $1.1 million).
Refer to “Note On Forward-Looking Statements” for additional discussion regarding forward-looking statements included herein. We are principally exposed to five types of market risk: interest rate risk; foreign currency risk; credit risk; equity price risk and commodity price risk.
Refer to “Note On Forward-Looking Statements” for additional discussion regarding forward-looking statements included herein. 99 We are principally exposed to five types of market risk: interest rate risk; foreign currency risk; credit risk; equity price risk and commodity price risk. Our policies to address these risks in 2024 were not materially different than those used in 2023.
The following tables summarize the aggregate hypothetical increase (decrease) in fair value of our fixed maturity investment and short term investments, private credit funds and term loans from an immediate parallel shift in the treasury yield curve, assuming credit spreads remain constant, reflecting the use of an immediate time horizon since this presents the worst-case scenario: Interest Rate Shift in Basis Points At December 31, 2023 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 27,259,888 $ 26,865,707 $ 26,560,861 $ 26,246,627 $ 25,904,022 Net increase (decrease) in fair value $ 699,027 $ 304,845 $ — $ (314,235) $ (656,839) Percentage change in fair value 2.6 % 1.1 % — % (1.2) % (2.5) % Interest Rate Shift in Basis Points At December 31, 2022 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 20,383,013 $ 20,131,215 $ 19,892,057 $ 19,655,793 $ 19,409,094 Net increase (decrease) in fair value $ 490,956 $ 239,158 $ — $ (236,264) $ (482,963) Percentage change in fair value 2.5 % 1.2 % — % (1.2) % (2.4) % As noted above, we use derivative instruments, primarily interest rate futures and interest rate swaps, within our portfolio of fixed maturity investments to manage our exposure to interest rate risk, which can include increasing or decreasing our exposure to this risk.
Assuming credit spreads remain constant and an immediate time horizon, this presents the worst-case scenario: Interest Rate Shift in Basis Points At December 31, 2024 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 30,049,296 $ 29,662,274 $ 29,275,315 $ 28,888,629 $ 28,502,051 Net increase (decrease) in fair value $ 773,981 $ 386,960 $ — $ (386,686) $ (773,264) Percentage change in fair value 2.6 % 1.3 % — % (1.3) % (2.6) % Interest Rate Shift in Basis Points At December 31, 2023 -100 -50 Base 50 100 (in thousands, except percentages) Fair value of fixed maturity and short term investments, private credit funds and term loans $ 27,259,888 $ 26,865,707 $ 26,560,861 $ 26,246,627 $ 25,904,022 Net increase (decrease) in fair value $ 699,027 $ 304,845 $ — $ (314,235) $ (656,839) Percentage change in fair value 2.6 % 1.1 % — % (1.2) % (2.5) % As noted above, we use derivative instruments, primarily interest rate futures, within our portfolio of fixed maturity investments to manage our exposure to interest rate risk, which can include increasing or decreasing our exposure to this risk.
In the future, we may choose to increase our exposure to non-U.S. dollar investments. 104 The following tables summarize the principal currencies creating foreign exchange risk for us and our net foreign currency exposures and the impact of a hypothetical 10% change in our net foreign currency exposure, keeping all other variables constant, as of the dates indicated: At December 31, 2023 AUD CAD EUR GBP JPY NZD Other Total (in thousands, except for percentages) Net assets (liabilities) denominated in foreign currencies $ 83,427 $ 133,228 $ (146,480) $ (161,522) $ 37,381 $ (50,771) $ (68,593) $ (173,330) Net foreign currency derivatives notional amounts (46,640) (95,820) 214,172 74,226 14,617 6,648 20,027 187,230 Total net foreign currency exposure $ 36,787 $ 37,408 $ 67,692 $ (87,296) $ 51,998 $ (44,123) $ (48,566) $ 13,900 Net foreign currency exposure as a percentage of total shareholders’ equity attributable to RenaissanceRe 0.4 % 0.4 % 0.7 % (0.9) % 0.5 % (0.5) % (0.5) % 0.1 % Impact of a hypothetical 10% change in total net foreign currency exposure $ (3,679) $ (3,741) $ (6,769) $ 8,730 $ (5,200) $ 4,412 $ 4,857 $ (1,390) At December 31, 2022 AUD CAD EUR GBP JPY NZD Other Total (in thousands, except for percentages) Net (liabilities) assets denominated in foreign currencies $ 76,323 $ 34,834 $ (434,498) $ (138,642) $ (11,361) $ 4,335 $ (74,592) $ (543,601) Net foreign currency derivatives notional amounts (62,818) (19,645) 424,007 107,499 36,192 (1,617) 65,124 548,742 Total net foreign currency exposure $ 13,505 $ 15,189 $ (10,491) $ (31,143) $ 24,831 $ 2,718 $ (9,468) $ 5,141 Net foreign currency exposure as a percentage of total shareholders’ equity attributable to RenaissanceRe 0.3 % 0.3 % (0.2) % (0.6) % 0.5 % 0.1 % (0.2) % 0.1 % Impact of a hypothetical 10% change in total net foreign currency exposure $ (1,351) $ (1,519) $ 1,049 $ 3,114 $ (2,483) $ (272) $ 947 $ (514) Credit Risk Credit risk relates to the uncertainty of a counterparty’s ability to make timely payments in accordance with contractual terms of the instrument or contract and market risk associated with changes in credit spreads.
In the future, we may choose to increase our exposure to non-U.S. dollar investments. 101 The following tables summarize the principal currencies creating foreign exchange risk for us and our net foreign currency exposures and the impact of a hypothetical 10% change in our net foreign currency exposure, keeping all other variables constant, as of the dates indicated: At December 31, 2024 AUD CAD EUR GBP JPY NZD Other Total (in thousands, except for percentages) Net assets (liabilities) denominated in foreign currencies $ 71,053 $ 126,520 $ (541,557) $ (233,774) $ (63,163) $ 9,210 $ (129,188) $ (760,899) Net foreign currency derivatives notional amounts (26,097) (76,318) 506,972 266,215 25,834 596 64,714 761,916 Total net foreign currency exposure $ 44,956 $ 50,202 $ (34,585) $ 32,441 $ (37,329) $ 9,806 $ (64,474) $ 1,017 Net foreign currency exposure as a percentage of total shareholders’ equity attributable to RenaissanceRe 0.4 % 0.5 % (0.3) % 0.3 % (0.4) % 0.1 % (0.6) % — % Impact of a hypothetical 10% change in total net foreign currency exposure $ (4,496) $ (5,020) $ 3,459 $ (3,244) $ 3,733 $ (981) $ 6,447 $ (102) At December 31, 2023 AUD CAD EUR GBP JPY NZD Other Total (in thousands, except for percentages) Net (liabilities) assets denominated in foreign currencies $ 83,427 $ 133,228 $ (146,480) $ (161,522) $ 37,381 $ (50,771) $ (68,593) $ (173,330) Net foreign currency derivatives notional amounts (46,640) (95,820) 214,172 74,226 14,617 6,648 20,027 187,230 Total net foreign currency exposure $ 36,787 $ 37,408 $ 67,692 $ (87,296) $ 51,998 $ (44,123) $ (48,566) $ 13,900 Net foreign currency exposure as a percentage of total shareholders’ equity attributable to RenaissanceRe 0.4 % 0.4 % 0.7 % (0.9) % 0.5 % (0.5) % (0.5) % 0.1 % Impact of a hypothetical 10% change in total net foreign currency exposure $ (3,679) $ (3,741) $ (6,769) $ 8,730 $ (5,200) $ 4,412 $ 4,857 $ (1,390) Credit Risk Credit risk relates to the uncertainty of a counterparty’s ability to make timely payments in accordance with contractual terms of the instrument or contract and market risk associated with changes in credit spreads.
Credit spreads are assumed to remain constant in these hypothetical examples. 103 Foreign Currency Risk Our functional currency for consolidated reporting purposes is the U.S. dollar. We routinely write a portion of our business in currencies other than U.S. dollars and invest a portion of our cash and investment portfolio in those currencies.
The foregoing reflects the use of an immediate time horizon, since this presents the worst-case scenario. Credit spreads are assumed to remain constant in these hypothetical examples. Foreign Currency Risk Our functional currency for consolidated reporting purposes is the U.S. dollar.
Removed
As a result of the Validus Acquisition expanding the geographic scope of our operations and the size of our investment portfolio, our exposure to some of these market risks has increased. Our policies to address these risks in 2023 were not materially different than those used in 2022.
Added
The following tables summarize the aggregate hypothetical increase (decrease) in fair value of our fixed maturity investment and short term investments, private credit funds and term loans from an immediate parallel shift in the treasury yield curve.
Added
The following tables summarize the aggregate hypothetical increase (decrease) in fair value in our fixed maturity investments and short term investments, private credit funds and term loans, from an immediate parallel shift in credit spreads.

Other RNR 10-K year-over-year comparisons