RenaissanceRe bounces back from 2005 hurricanes

RenaissanceRe Holdings Ltd. (NYSE: RNR) has reported a 2006 Q3 profit of US$251.1 million, compared to a net loss in 2005 Q3 of US$287.3 million.”We are very pleased to report another strong quarter with record results,” RenaissanceRe CEO Neill A. Currie said of the results. “Our core property cat business generated exceptional earnings, and our book value per share grew by over 12% this quarter.”Mr. Currie added: “We currently expect the demand for capacity to continue into 2007, and our priorities remain clear: maintaining a focused and disciplined approach to underwriting that enables us to achieve superior long-term results.”In a press release, the company attributed its 2006 Q3 results to “light insured catastrophe loss activity compared to the third quarter of 2005, as well as a US$31.4-million net positive impact resulting from the commutation of certain assumed and ceded reinsurance contracts in the quarter.”The light hurricane season in 2006 resulted in a yo-yo effect for the Bermuda reinsurer’s combined ratio. In 2006 Q3, RenaissanceRe reported a combined ratio of 36.5%; only a year ago, in 2005 Q3, the company’s combined ratio was 215.7%.”The significant decrease in the combined ratio and loss ratio during the third quarter of 2006 compared to the third quarter of 2005 was principally the result of light catastrophe loss activity experienced in the third quarter of 2006 compared with the large hurricanes in the third quarter of 2005,” the company noted in an online posting.