Renaissance Holdings Ltd. reported first-quarter profits nearly quadrupling compared to the year-ago period as light catastrophe losses and lower than expected adverse reserve activity bolstered the bottom line.
The Bermuda-based property reinsurer reported net income of $179 million compared with $44.3 million in the comparable 2005 period.
Company chairman Neill Currie noted that RenRe grew its managed catastrophe reinsurance premium by 23 percent in the quarter, but that much of the carrier's fate this year depends on “the ultimate magnitude of our opportunities in Florida.”
The company said specialty premium declined by 43 percent, while the individual risk segment reported 15 percent of top line growth.
Net premiums written for the quarter came in at $697.8 million compared with $615.8 million for the same 2005 period.
The company reported a combined ratio of 53.7 compared with 90.2 in the prior-year period.
Morgan Stanley analyst William Wilt called the results a “significant surprise.”
“Low catastrophes fueled the 50 percent upside, but we also see emerging evidence of important structural change and the benefits of top line growth into a firming property catastrophe reinsurance pricing environment,” he wrote.
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