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    RNR
    Earnings call· Jun 2026(Q2 FY26)

    RENAISSANCERE HOLDINGS LTD RNR

    Jul 23, 2026 Source

    Executive summary

    RenaissanceRe Q2 FY26 — Strong Underwriting, Fee, and Investment Income Drive Tangible Book Value Growth

    RenaissanceRe delivered a strong quarter, driven by robust performance across underwriting, fee, and investment income, leading to significant tangible book value per share growth. The company actively managed its portfolio, growing property catastrophe limits despite rate declines while strategically reducing exposure in certain casualty lines. Proactive capital management through share repurchases further enhanced shareholder value, with a focus on optimizing risk-adjusted returns in a dynamic market.

    Highlights

    5

    • Operating income of $548 million and annualized operating return on equity of 20.1%.

    • Tangible book value per share grew 6% in the quarter and 27% year-over-year.

    • Underwriting income was $600 million, contributing to an adjusted combined ratio of 72% with 9 percentage points of favorable development.

    • Net investment income reached an all-time high of $314 million, up 10% year-over-year.

    • Repurchased $350 million of shares in the quarter, contributing to 66% tangible book value per share growth since Q2 2024.

    Concerns

    3

    • Overall gross premiums written decreased by 12% to $3 billion, with Property Catastrophe down 14% and Casualty and Specialty down 15%.

    • Casualty and Specialty segment reported an adjusted combined ratio of 102% and 4.4 percentage points of prior year adverse development, primarily due to the Baltimore Bridge collapse.

    • Property catastrophe rates were down high teens at midyear renewals, consistent with expectations, indicating continued pricing pressure.

    Guidance & targets

    9
    CategoryTargetConfidence
    Other Property Net Premiums Earned
    around $330 million
    medium materiality
    High
    Other Property Attritional Loss Ratio
    mid-50s
    medium materiality
    High
    Casualty and Specialty Net Premiums Earned
    approximately $1.3 billion
    medium materiality
    High
    Casualty and Specialty Adjusted Combined Ratio
    high 90s
    medium materiality
    High
    Management Fees
    around $50 million
    medium materiality
    High
    Performance Fees
    around $30 million per quarter
    low materiality
    Medium
    Retained Net Investment Income
    continue to trend modestly higher
    medium materiality
    High
    Operating Expense Ratio
    build towards 5%
    medium materiality
    High
    Share Repurchases
    continued share repurchases
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Property Catastrophe
    Lower rates at midyear drove most of the decline in GPW, but the business remains rate adequate. Successfully grew limit with high-quality clients.
    Current accident year loss ratio: 12%Favorable development: 25 percentage pointsGross premiums written: down 14% (excluding reinstatement premiums)Limit growth at midyear: $600 million
    		—-14% (ex-reinstatement premiums)—9% (adjusted combined ratio)
    Other Property
    Produced strong results with low current year losses and favorable prior year development. Selectively reduced risk in areas like South Florida due to rate pressure.
    Current equity loss ratio: 53%Favorable development: 35 percentage points
    		—9.5% (GPW, but roughly flat adjusted for prior year one-off downward adjustments)—52% (adjusted combined ratio)
    Casualty and Specialty
    Results impacted by Baltimore Bridge settlement shift from property to specialty. Underlying performance consistent with guidance when excluding Baltimore Bridge and purchase accounting. Actively shaping the book through proactive reductions and increased ceded reinsurance.
    Current accident loss ratio: 68%Prior year adverse development: 4.4 percentage points (4.1 pts related to Baltimore Bridge, 0.4 pts from purchase accounting adjustments)General casualty GPW: down 17%Specialty GPW: down 16%Credit GPW: down 19%Ceded share of GPW: 35% (vs 25% a year ago)
    		—-15% (GPW)—102% (adjusted combined ratio)

    Operational metrics

    15
    Operating income
    $548 million
    Q2 FY26
    Underwriting income
    $600 million
    Q2 FY26
    Operating earnings per share
    $12.92
    Q2 FY26
    Retained mark-to-market gains
    $154 million
    Q2 FY26

    primarily from equity

    Operating earnings
    $4.6 billion
    Q2 2024 through Q2 2026
    Operating EPS benefit from lower share count
    >20%
    Q2 2024 through Q2 2026
    Management fees
    $48 milliondown compared to last year
    Q2 FY26

    Q2 2025 management fees were elevated due to recaptured da Vinci fees from California wildfires

    Performance fees
    $35 million
    Q2 FY26

    reflecting favorable development

    Retained portfolio duration
    3.5 yearsup from 3.4 years
    Q2 FY26

    up from 3 years at end of 2025

    Operating expense ratio
    4.3%down from last year
    Q2 FY26

    due to Bermuda tax credit and higher overrides from casualty ceded program

    Effective tax rate on GAAP net income
    12%
    Q2 FY26
    Tax rate on income applicable to RenaissanceRe shareholders
    17%
    Q2 FY26

    reflects 15% Bermuda corporate income tax as well as some tax in other jurisdictions

    Florida book private pricing
    65%
    Q2 FY26

    maintained above market terms

    Ceded share of Casualty and Specialty GPW
    35%vs 25% a year ago
    Q2 FY26
    Industry loss estimate for Baltimore Bridge
    $3 billion
    Q2 FY26

    company reserved to this from the start

    Industry KPIs

    9
    MetricValueDetails
    Combined ratio72%%
    Capital returns$350 millionUSD
    ROE operating ROE20.1%%
    Catastrophe losses$12 millionUSD
    Book value per share6%%
    Net investment income$314 millionUSD
    Net premiums written earned$3 billionUSD
    Renewal rate change pricinghigh teens%
    Prior year reserve development9 percentage points%

    Risks & headwinds

    4
    Continued pricing pressure in property catastrophe marketOngoing, expected into 2027

    Property cat rates down high teens at midyear renewals, U.S. property cat book rates down ~20% over last 2 years.

    Mitigation: Increase output to the market (retrocession, capital partners), focus on rate adequacy, aggressive line size management, risk selection.

    Social inflation impact on casualty linesOngoing

    Casualty and Specialty current accident loss ratio 68%, adjusted combined ratio 102%, 4.4 percentage points prior year adverse development (4.1 pts Baltimore Bridge).

    Mitigation: Proactive recognition of trend in reserving and pricing decisions, strengthening reserves, selective reduction of general liability portfolio, increased ceded reinsurance (35% of C&S GPW).

    War in the Middle East impacting shipping and infrastructureOngoing

    Assets impacted, but believed to be covered in current reserves.

    Mitigation: Close monitoring of the situation.

    Competition in credit and specialty marketsOngoing

    Not quantified, but noted as increasing competition.

    Mitigation: Holding lines in credit, well-positioned in specialty post-Validus, but acknowledging market competition.

    What to watch in Q3 FY26

    5

    Property Catastrophe Pricing Trend

    Next quarter (Q3 FY26) and into January 1, 2027 renewals.
    CurrentRates down high teens at midyear renewals; U.S. property cat book rates down ~20% over last 2 years.
    TargetStabilization or moderation of rate declines.

    Why it matters

    Continued rate pressure could impact underwriting margins and the attractiveness of the property cat portfolio, a key driver of profit.

    I would expect that there'll be more rate pressure. But as the market continues to become more competitive, we will increase our output to the market, which is historically what happens in a declining rate environment.

    Q&A highlights

    6

    How will the property cat market evolve in the absence of significant losses, given current attractive levels and declining rates? Will it bottom in '27/'28 or continue to decline?

    Kevin O'Donnell expects continued pricing pressure due to market supply and reducing demand growth. He anticipates increased use of retrocessional protection to manage net exposure as competition rises, but remains confident in building a strong portfolio and compounding tangible book value per share.

    “I would expect that there'll be more rate pressure. But as the market continues to become more competitive, we will increase our output to the market, which is historically what happens in a declining rate environment.”

    asked by Elyse Greenspan · answered by Kevin O'Donnell

    2 min read5 chapters

    Detailed Narrative

    01

    Midyear Renewals and Property Catastrophe Strategy

    At midyear renewals, property catastrophe rates declined by high teens, consistent with expectations. RenaissanceRe leveraged its leadership position and client relationships to grow property cat limit by $600 million with high-quality clients, particularly in nationwide accounts and California programs. The company views current rates as broadly adequate and emphasizes a nuanced strategy focused on rate adequacy rather than rigid hard/soft market playbooks, using retrocessional buying and capital partners to shape the net portfolio.

    02

    Casualty and Specialty Portfolio Shaping

    The Casualty and Specialty segment saw a 15% decline in gross premiums written, driven by proactive reductions in general liability and cyber exposure, as well as timing of📎 credit deals. The segment's adjusted combined ratio was 102%, impacted by a $12 million net negative shift related to the Baltimore Bridge collapse from other property to specialty. Management is actively shaping the portfolio through increased ceded reinsurance (35% of GPW vs. 25% a year ago) to manage volatility and preserve margin, particularly in casualty lines where social inflation remains a concern.

    03

    Capital Management and Share Repurchases

    The company repurchased $350 million of shares in Q2 at an average price of $258 per share, bringing total buybacks since Q2 2024 to $3 billion. This proactive capital management, combined with strong operating earnings, has contributed to a 66% growth in tangible book value per share and over 20% benefit to operating EPS since Q2 2024. Management anticipates continued share repurchases in Q3, balancing capital deployment with market opportunities.

    04

    AI Integration and Operational Efficiency

    RenaissanceRe is actively integrating AI into its operations, focusing on both augmentation (generative AI tools for employees) and automation. The company is rebuilding its REMS underwriting system to include AI integration, aiming to enhance judgment and expand underwriting capabilities. This strategic investment is expected to impact increasing portions of the business over time⏳, moving from "humans in the loop" to "humans on the loop" to maximize benefits.

    05

    Leadership Transition

    Bob Qutub, CFO, will retire at year-end 2026, with Matt Neuber, current Chief Portfolio Officer, succeeding him as CFO in 2027. The transition is focused on continuity, leveraging Matt Neuber's decade-long experience with the company, including his role in building the capital partners business and scaling the treasury function.

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