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Member, Beacon International Group, Ltd.
PEMBROKE, Bermuda—RenaissanceRe Holdings Ltd. said Tuesday that had a net income loss of $174.0 million during the first nine months of 2011 compared with a $580.0 million profit in the same period of 2010.
RenRe's gross premiums written rose by 22.7% year over year to $1.39 billion during the year to date ended Sept. 30.
The Pembroke, Bermuda-based reinsurer said it lost $43.6 million from large events in the third quarter such as Hurricane Irene, adding that it had overestimated losses from major catastrophes in the first half by $20.0 million.
The company had estimated in April that it lost $328.6 million from the March 11 earthquake and tsunami in Japan, $197.1 million from the New Zealand earthquake, and $39.6 million from Australian floods. It also said in July that tornadoes in the U.S. caused $70.8 million of losses in the second quarter.
The company's total investments income fell 69.6% year over year to $103.3 million during the first three quarters.
Third-quarter net income sank 75.9% to $49.3 million. Gross premiums written increased 25.5% to $28.4 million in the third quarter, primarily due to reinstatement premiums written from the February 2011 New Zealand earthquake and Hurricane Irene. Meanwhile, RenRe lost $18.6 million on investments in the quarter compared with a $148.5 million gain in the same period of 2010.
“Our insured catastrophe losses were relatively modest during the third quarter in a season that experienced a relatively large number of tropical storm formations. On the other hand, there was notable volatility in the capital markets, which adversely impacted our investment results,” RenRe President and CEO Neill A. Currie said in a statement.