RenaissanceRe reports 1Q net premiums up

RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported US$195.7 million in 2006 first-quarter operating income, compared to US$54.5 million in the first quarter of 2005.Net premiums earned for the first quarter of 2006 were US$351.7 million, compared to US$301.5 million for the same quarter of 2005. Net premiums earned include US$213.4 million in net premiums earned for the company’s reinsurance segment in the first quarter of 2006, compared to US$200.4 million for the same quarter of 2005. The company’s individual risk segment in the first quarter of 2006 earned US$138.3 million in net premiums, compared to US$101.1 million for the same quarter of 2005.RenaissanceRe’s combined ratio for the first quarter of 2006 was 90.2%, and net investment income for the first quarter of 2006 was US$80.4 million, compared to US$51.2 million for the same quarter in 2005. RenaissanceRe CEO Neill A. Currie commented: “Our first quarter results benefited from light catastrophe losses and lower than expected reported claims on prior year reserves within our reinsurance segment, but also demonstrate the ongoing strength of the RenaissanceRe business and franchise.”Given improving pricing and terms for catastrophe reinsurance, we grew our managed catastrophe reinsurance premium by 23% in the quarter; for the year, we continue to expect growth of over 15%, but recognize that there is substantial uncertainty – and potential upside – depending largely upon the ultimate magnitude of our opportunities in Florida. “Conversely, we are seeing fewer attractive opportunities within specialty reinsurance than we had hoped. Our specialty premium declined by 43%, which is more pronounced than our 2006 guidance of a 35% decline, although our specialty premium can fluctuate from quarter to quarter.”Our individual risk segment is on track with our expectations of 15% top line growth for the year and generated solid underwriting income for the quarter.”Overall, we are pleased with the performance for the quarter. The team is energized, and we are well positioned to participate in the hardening property catastrophe market we now see for this year.”