NU Online News Service, July 28, 3:38 p.m. EDT
Renaissance Re reported a 23 percent drop in 2010 second-quarter net income available to common shareholders compared to a year ago as the company experienced a decline in both net investment income and premiums written.
The Pembroke, Bermuda-based insurer and reinsurer said 2010 second-quarter net income available to common shareholders was $210.2 million, compared to $271 million in the 2009 second quarter.
Net premiums written fell to $552.6 million in the quarter from $631.4 million a year ago. Gross premiums written decreased 1.6 percent, or 13.7 million, to $841.5 million from $855.2 million. Renaissance Re said the decrease in gross premiums written "was primarily due to a decrease in managed catastrophe premiums of $70.4 million, or 12 percent, and partially offset by increases in the company's specialty, Lloyd's and insurance premiums."
The 2010 second-quarter combined ratio improved to 42.3 from 43.8 compared to the 2009 second quarter.
Net investment income was $27.6 million, down from $114.3 million a year ago. "The $86.7 million decrease in net investment income was principally driven by a $69.9 million decrease from the company's other investments, driven by lower returns for the company's investments in senior secured bank loan funds and non-U.S. fixed income funds, a $4.1 million decrease from its hedge fund and private equity investments, and a $12.3 million decrease in net investment income from its fixed maturity investments," the company said.
For the first six months of the year, Renaissance Re said net income available to common shareholders was $375.3 million, up from $368.5 million in the 2009 first half.
Neill A. Currie, Renaissance Re CEO, said: "We generated strong underwriting profits, had a successful June 1 renewal season, and have underwritten an attractvie profolio of risks. We actively managed our capital during the quarter and remain committed to generating superior returns for our shareholders."
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