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RenaissanceRe quarterly profit surges to $120.7M

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RenaissanceRe Holdings Ltd. posted second-quarter net income of $120.7 million, a nearly fivefold increase from $26.8 million in the prior-year quarter as revenue and investment income jumped and net claims and claims expenses fell.

Revenues for the three months ended June 30 rose 32.3% to $331.1 million, and net investment income jumped 32.0% to $34.5 million as net written premiums declined 38.0% to $346.4 million, the Pembroke, Bermuda-based reinsurer said Tuesday in a statement.

Second quarter 2014 also saw a drastically smaller loss on unearned premiums — $85.9 million compared with $267.2 million in second quarter 2013 — which boosted revenues and profits.

The second-quarter combined ratio deteriorated slightly to 61.7% from 61.2% in the year-ago period.

“Our team executed well in tough market conditions, and I am pleased with the book of business we constructed,” RenRe CEO Kevin J. O’Donnell said in the company’s earnings statement. “We believe that over the long term the proper assessment of risk and disciplined underwriting will continue to be key differentiators in our industry.”

For the first six months of 2014, net income increased 25.1% to $271.8 million as revenue rose 15.6% to $674.8 million.

Net written premiums declined by 19.9% to $796.7 million, while net investment income rose 5.9% to $73.4 million.

The company’s six-month combined ratio deteriorated to 54.1% from 49.2% in the year-ago period.

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