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    RNR
    Earnings call· Mar 2026(Q1 FY26)

    RENAISSANCERE HOLDINGS Q1 FY26 earnings call RNR

    Apr 29, 2026 Source

    Executive summary

    RenaissanceRe Q1 FY26 — Strong Underwriting, Fee, and Investment Income Drive 22% ROE

    RenaissanceRe delivered a strong Q1 FY26, showcasing the resilience of its diversified earnings model with significant contributions from underwriting, fee, and investment income. Despite market volatility and declining property cat rates, the company maintained underwriting discipline, strategically deployed capital, and actively managed its investment portfolio. Management continues to focus on maximizing long-term tangible book value per share growth and operating earnings through disciplined capital allocation and portfolio construction.

    Highlights

    5

    • Operating income of $591 million, resulting in a 22% annualized operating return on equity.

    • Strong underwriting income of $589 million, driven by excellent current accident year performance and $160 million of favorable prior year development.

    • Total fee income of $94 million, exceeding expectations due to strong performance fees.

    • Retained net investment income of $304 million, supported by a favorable rate environment and strategic portfolio adjustments.

    • Repurchased $353 million of shares in the quarter, part of $2.7 billion since 2024, boosting returns with minimal dilution.

    Concerns

    4

    • Tangible book value per share increased by only 1.5% to $233.49, impacted by $357 million of retained mark-to-market losses.

    • Property Catastrophe reinsurance rates were down low teen percentages at January 1 renewals, with U.S. accounts down closer to 10% and international/global closer to 15%.

    • Casualty and Specialty segment experienced increased competition in specialty and credit lines, with premiums ceded increasing to 20% from 13% a year ago.

    • Operating expense ratio expected to grow to 5% to 5.5% over the year, up from 4.1% in Q1 FY26.

    Guidance & targets

    10
    CategoryTargetConfidence
    Other Property Net Premiums Earned
    ~$350 million
    medium materiality
    Medium
    Other Property Attritional Loss Ratio
    mid-50s
    medium materiality
    Medium
    Casualty and Specialty Net Premiums Earned
    ~$1.3 billion
    medium materiality
    Medium
    Casualty and Specialty Adjusted Combined Ratio
    high 90s
    medium materiality
    Medium
    Management Fees
    ~$50 million
    medium materiality
    Medium
    Performance Fees
    ~$120 million
    medium materiality
    Medium
    Retained Net Investment Income
    slightly up
    low materiality
    Low
    Effective Tax Rate
    low double digits
    medium materiality
    Medium
    Operating Expense Ratio
    5% to 5.5%
    medium materiality
    Medium
    New Demand for U.S. Cat Limit
    ~$15 billion
    high materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Property Catastrophe
    Rates were down low teen percentages at 1/1 renewals (U.S. accounts down ~10%, international/global ~15%), but rates remain adequate. Company took above market share of new business, focusing on attractive margins (select California deals, nationwide accounts) and growing with large U.S. clients.
    Current accident year loss ratio: 10.2%Adjusted combined ratio: 19.2%Favorable development: 11 percentage pointsGross written premiums (excluding reinstatement premiums): roughly flat (down 3% from Q1 2025)New limit deployed: $1 billionCeded rates: down high teens
    		————
    Other Property
    Book shaped to reduce peak exposure while preserving attractive margins. Business performing well with strong current and prior year loss ratios. Terms and conditions remain strong, but pricing is under more pressure, leading to trimming exposure in pressured areas and improving net profitability through ceded reinsurance.
    Current accident year loss ratio: 55.5%Adjusted combined ratio: 56.1%Favorable development: 29 percentage points (primarily from non-cat attritional book)Gross written premiums: down 7%
    		————
    Casualty and Specialty
    Market conditions show ongoing rate increases in general liability (necessary to keep pace with loss trend) and increased competition in specialty and credit lines. Portfolio optimized through risk selection, mix, and greater use of ceded reinsurance (quota share on long-tail, excess of loss on marine/energy). Improved margins will take time to emerge, but the business supports book value growth through investment income from float on casualty reserves.
    Adjusted combined ratio: 99.4%Gross written premiums: down 13%Exposure to social inflation-exposed general liability: down 40% over last 2 yearsPremiums ceded: 20% (vs 13% a year ago)Specialty and credit as % of portfolio mix: >50%
    		————

    Operational metrics

    27
    Operating Income
    $591 million
    Q1 FY26

    Reflects the strength of RenaissanceRe's business model and the value of its 3 drivers of profit.

    Annualized Operating Return on Equity
    22%
    Q1 FY26

    Driven by strong contributions from underwriting, fee, and investment income.

    Operating Earnings Per Share
    $13.75
    Q1 FY26

    Strong start to 2026 despite geopolitical and economic volatility.

    Tangible Book Value Per Share
    $233.49increased by 1.5%
    Q1 FY26

    Impacted by retained mark-to-market losses and share repurchases at a premium to book value.

    Favorable Prior Year Development
    $160 million
    Q1 FY26

    Proportionately larger contribution from other property, reflecting proactive portfolio positioning and superior underwriting.

    Total Fee Income
    $94 million
    Q1 FY26

    Performance fees were the main driver of the upside, reflecting strong current year underwriting results and favorable prior year development.

    Retained Net Investment Income
    $304 milliondown about 3% from Q4
    Q1 FY26

    Reflects the scale of invested assets, quality of portfolio, and favorable rate environment.

    Retained Mark-to-Market Losses
    $357 million
    Q1 FY26

    About half related to fixed maturity portfolio, other half to equity losses. Largely unrealized, reflecting yield curve shift.

    Investment Portfolio Exposure to Private Credit
    5%
    Q1 FY26

    Enhances book yield due to illiquidity premium, supported by exceptional capital strength and high liquidity.

    Share Repurchases
    $353 million
    Q1 FY26

    Executed in a disciplined manner, allocating capital where favorable risk-adjusted returns are seen.

    Total Shares Repurchased
    $2.7 billion
    since 2024

    Repurchased at attractive valuations very close to current book value, boosting returns with minimal dilution.

    Contribution from Fee Income and Retained Net Investment Income to ROE
    15 points
    Q1 FY26

    Provides a solid foundation of earnings each quarter.

    Operating Income (last 4 quarters)
    $2.5 billion
    last 4 quarters

    Continuation of strong results, providing a strong base to absorb volatility.

    Operating Return on Average Common Equity (last 4 quarters)
    24%
    last 4 quarters

    Demonstrates consistent strong performance.

    Adjusted Combined Ratio
    72%
    Q1 FY26

    Reflects disciplined underwriting and portfolio construction.

    Gross Premiums Written
    $3.4 billiondown 16% from comparable quarter
    Q1 FY26

    Last year's results included California wildfires, which increased loss activity and drove $340 million of reinstatement premiums in Q1 2025.

    Management Fees
    $48 million
    Q1 FY26

    Part of total fee income of $94 million.

    Performance Fees
    $46 million
    Q1 FY26

    Higher than expectations due to a combination of strong underwriting results, favorable development, and one-time recognition of deferred performance fees.

    New Money Yield
    5.1%up from 4.8%
    Q1 FY26

    Increased due to reallocation from shorter-term treasuries to investment-grade corporate credit.

    Investment Portfolio Duration
    3.4 yearsfrom 3 years
    Q1 FY26

    Extended by reallocating from shorter-term treasuries to investment-grade corporate credit.

    GAAP Effective Tax Rate
    6%
    Q1 FY26

    Benefited from a few one-off items and Bermuda substance-based tax credits.

    Bermuda Substance-Based Tax Credits
    75%vs 50% in 2025
    FY26

    About 2/3 of the value reflected in underwriting (90 bps impact on combined ratio), remainder in corporate expenses.

    Operating Expense Ratio
    4.1%up from 3.7% in comparable quarter
    Q1 FY26

    Down due to some one-time reductions in the quarter.

    Operating Expense Ratio (Core)
    mid-4% to 4.6%
    Q1 FY26

    The core operating expense ratio, excluding one-time reductions in Q1.

    Share Repurchases (YTD April 24)
    $458 million
    YTD April 24

    Company expects to continue disciplined approach to capital management.

    Capital Return to Joint Ventures
    $730 million
    FY25 earnings distribution

    Distribution of earnings from a good year in 2025, part of normal process.

    Noncontrolling Interest Earnings
    $900 million
    FY25

    Earnings from capital partners that are not taxed on the company's GAAP effective tax rate.

    Industry KPIs

    8
    MetricValueDetails
    Combined ratio72%%
    Capital returns$353 millionUSD
    ROE operating ROE22%%
    Book value per share$233.49USD
    Net investment income$304 millionUSD
    Net premiums written earned$3.4 billionUSD
    Renewal rate change pricingdown low teen percentages%
    Prior year reserve development$160 millionUSD

    Deals & partnerships

    1
    DaVinciReturn of capital to joint venture partners

    Performance fees were higher than expectations due to a combination of strong underwriting results, favorable development and a onetime recognition of deferred performance fees related to a return of capital by DaVinci.

    Risks & headwinds

    6
    Geopolitical risk and macro environment volatilityongoing

    Geopolitical risk is elevated. Markets continue to adjust to higher for longer rate environment and the macro environment remains increasingly fragmented, highly volatile and less predictable.

    Mitigation: Company's business is anti-correlated to this environment; value of protection increases. Strategy to absorb volatility and manage it efficiently.

    Mark-to-market losses on investment portfolioQ1 FY26

    $357 million

    Mitigation: Largely unrealized, temporary drag on book value. Same market movements improve reinvestment yields and support future earnings power. Investment portfolio remains high quality.

    Declining Property Catastrophe reinsurance ratesQ1 FY26 (1/1 renewals)

    down low teen percentages at 1/1 renewals (U.S. accounts down ~10%, international/global ~15%)

    Mitigation: Rates remain adequate; company took above market share of new business and deployed $1 billion of new limit by focusing on attractive margins and clients.

    Increased competition in Specialty and Credit linesQ1 FY26 (1/1 renewals and ongoing)

    increased competition in specialty and credit lines in response to recent profitability

    Mitigation: Optimizing portfolio through risk selection, mix, and greater use of ceded reinsurance (premiums ceded up to 20% from 13% a year ago).

    Social inflation in general liabilitypast 2 years and ongoing

    Exposure to this class is down 40% over the last 2 years, but premiums are down significantly less because of rate increases.

    Mitigation: Reducing exposure on deals most exposed to social inflation, shifting portfolio mix to best returning business, and using ceded reinsurance. Insurers are investing in claims handling.

    War in the Middle EastQ1 FY26 and ongoing

    couple of points into the Casualty and Specialty segment (Q1 FY26 impact)

    Mitigation: Low underwriting exposure to the region, war excluded from standard property policies. Potential exposure primarily from specialty portfolio (war on land, marine war), with retrocessional protection purchased.

    What to watch in Q2 FY26

    5

    Other Property Net Premiums Earned

    Q2 FY26
    TargetAround $350 million

    Why it matters

    Indicates the company's ability to maintain premium volume in a segment facing pricing pressure, reflecting portfolio shaping efforts.

    Looking ahead, in the second quarter, we expect other property net premiums earned of around $350 million

    Q&A highlights

    7

    Inquired about pricing trends for bound U.S. midyear renewals, expectations for remaining renewals, and changes in demand.

    David Marra stated Q2 trends are a continuation of Q1, with U.S. cat rates down closer to 10% and international/global closer to 15%. Noted opportunities for private terms and that new demand for U.S. cat limit is now estimated closer to $15 billion for FY26, up from an earlier estimate of $10 billion, driven by core personal lines clients.

    “New demand is actually higher than we thought at 1/1. If you go back a little bit, we were saying $20 billion of new demand in 2024, $15 billion in 2025, and we thought $10 billion is our estimate for 2026. That's looking closer to $15 billion now, but we won't know until all the Q2s are done.”

    asked by Elyse Greenspan · answered by David Marra

    2 min read5 chapters

    Detailed Narrative

    01

    Diversified Profit Drivers

    RenaissanceRe's business model relies on three drivers of profit: underwriting, fee, and investment income, which all contributed meaningfully to Q1 FY26 results. This balanced contribution enhances resilience and reduces dependency on any single market condition, aligning with the strategy to absorb and manage volatility efficiently for strong shareholder returns. The company aims to produce consistent results over time⏳, recognizing that occasional losses will occur.

    02

    Strategic Capital Management

    The company repurchased $353 million of shares in Q1 FY26, part of a larger $2.7 billion buyback since 2024, at attractive valuations close to current book value. This disciplined approach aims to boost shareholder returns while maintaining strong capital and liquidity to support underwriting and future growth opportunities. Management views share repurchases as an important part of its capital management strategy, seeking to deploy capital into desirable underwriting opportunities and return excess capital to shareholders.

    03

    Investment Portfolio Reallocation

    RenaissanceRe strategically adjusted its investment portfolio in Q1 FY26, reducing gold exposure from 5% to 2% to lock in gains and lower volatility. Concurrently, it increased exposure to high-quality investment-grade corporate credit and reduced shorter-term treasuries, extending portfolio duration to 3.4 years from 3 years and increasing the new money yield from 4.8% to 5.1%. The company also clarified its measured allocation to private credit, which constitutes about 5% of the portfolio, enhancing book yield due to the associated illiquidity premium.

    04

    Casualty & Specialty Portfolio Optimization

    The company is actively optimizing its Casualty and Specialty book through risk selection, portfolio mix, and increased use of ceded reinsurance. Exposure to general casualty, particularly deals most exposed to social inflation, has been reduced by 40% over the last two years, while premiums are down significantly less due to rate increases. Ceded reinsurance now covers 20% of Casualty and Specialty premiums, up from 13% a year ago, primarily through quota share on long-tail books and excess of loss on marine/energy. This strategy aims to preserve valuable options and enhance the overall quality of the book.

    05

    Midyear Renewal Dynamics and Florida Market

    For U.S. midyear renewals, RenaissanceRe has already bound about half of its portfolio, with half of that on private terms. The Florida market continues to benefit from strong pricing, reduced social inflation due to tort reform, and robust terms and conditions, leading to increased demand for reinsurance as policies shift from public to private markets. The company is finding opportunities to grow in Florida due to favorable economics, leveraging its deep understanding of the market and client relationships.

    AI-generated summary of the company’s earnings call. Not investment advice.