RENAISSANCERE HOLDINGS LTD

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance, offering property, casualty and specialty reinsurance and certain insurance solutions to customers principally through intermediaries. The company operates in the highly competitive (re)insurance industry, which is historically cyclical by product and market. Key structural forces shaping competition include the supply of competing capacity, increased access to capital, new technologies including artificial intelligence, and consolidation among competitors, customers and brokers. The company sits within this landscape as a provider that seeks to offer stable, predictable and consistent risk-based pricing and prompt turnaround on claims, believing its modeling and technical expertise, broad risk appetite, and track record of keeping promises have made it a provider of first choice in many lines of business worldwide.

The company's primary competitors are traditional insurance and reinsurance companies, but also include third-party capital managers, certain Lloyd's syndicates active in the London market, and hedge funds, pension funds, endowments, investment banks and other capital market participants that may be active in the reinsurance market through the formation of reinsurance companies or the use of financial products such as catastrophe bonds and other insurance-linked securities. RenaissanceRe's stated competitive advantages are an integrated system of three elements: superior risk selection, superior customer relationships, and superior capital management. The company believes it is well positioned to fulfill its objectives by virtue of the experience and skill of its management team, its integrated and flexible underwriting and operating platform, its significant financial strength, its strong relationships with brokers, customers and capital partners, its commitment to superior service and its proprietary modeling technology. In 2025, three brokerage firms accounted for 81.3% ¹ of gross premiums written, with Aon plc at 34.5% ², Marsh & McLennan Companies, Inc. at 33.8% ³, and Arthur J. Gallagher at 13.0% ⁴.

The company generates revenue through three principal drivers of profit: underwriting income from its core underwriting business, fee income primarily from managing third-party capital in its Capital Partners unit composed of management fee income and performance fee income, and investment income derived from the investment portfolio maintained to support the business. The core business model focuses predominantly on writing reinsurance, applying a reinsurance lens of approaching risks as a portfolio to the insurance business written primarily through delegated authority arrangements. The company's Capital Partners unit creates and manages innovative joint ventures and managed funds which provide access to the portfolios its underwriters build. The company principally measures its financial success through long-term growth in tangible book value per common share plus the change in accumulated dividends.

The company's business consists of two reportable segments: Property and Casualty and Specialty. The Property segment includes the catastrophe class of business, principally comprised of excess of loss reinsurance and excess of loss retrocessional reinsurance which insures insurance and reinsurance companies against natural and man-made catastrophes, and the other property class of business, primarily comprised of proportional reinsurance, property per risk, property (re)insurance, delegated authority arrangements and regional U.S. multi-line reinsurance. For the year ended December 31, 2025, Property segment gross premiums written were $4,942,141,000 ⁵, representing 42.1% ⁶ of total gross premiums written, with catastrophe class gross premiums written of $3,318,186,000 ⁷ (67.1% ⁸ of the segment) and other property gross premiums written of $1,623,955,000 ⁹ (32.9% ¹⁰ of the segment). The Casualty and Specialty segment writes casualty and specialty reinsurance and insurance across a broad range of classes including general casualty, professional liability, credit and other specialty lines. For the year ended December 31, 2025, Casualty and Specialty segment gross premiums written were $6,796,279,000 ¹¹, representing 57.9% ¹² of total gross premiums written, with general casualty at $2,145,495,000 ¹³ (31.6% ¹⁴ of the segment), professional liability at $1,076,897,000 ¹⁵ (15.8% ¹⁶), credit at $1,224,716,000 ¹⁷ (18.0% ¹⁸), and other specialty at $2,349,171,000 ¹⁹ (34.6% ²⁰).

The company manages a number of joint ventures and managed funds which provide an additional presence in the market, enhance client relationships and generate management fee income and performance fee income. Principal joint ventures and managed funds include DaVinci, Fontana, Medici, Medici UCITS, Vermeer, Top Layer and Upsilon. As of December 31, 2025, the company's economic ownership in these entities was: DaVinci 24.3% ²¹, Fontana 28.7% ²², Medici 11.3% ²³, Medici UCITS 34.3% ²⁴, Vermeer 0% ²⁵, Top Layer 50.0% ²⁶, and Upsilon 12.9% ²⁷. DaVinci, Fontana, Medici, and Vermeer are consolidated as variable interest entities for which the company is the primary beneficiary. The company also has an Other category that primarily includes the results of its investment unit, its share of strategic investments, corporate expenses, capital servicing costs, income tax benefit (expense) and noncontrolling interests. Strategic investments include investments in the Tower Hill Companies, which grant access to participants in the Florida homeowners insurance market, and TWFG, which distributes personal and commercial insurance across the United States.

In March 2025, the company launched Medici UCITS, a new Irish domiciled property catastrophe bond fund and a sub-fund of RenaissanceRe Medici ICAV, which launched with $341.5 million ²⁸ in total capital, made up of a combination of primarily existing partner capital, new partner capital and a $140.0 million ²⁹ co-investment from the Company. During 2025, the company repurchased 6,434,503 ³⁰ common shares at an aggregate cost of $1.6 billion ³¹ and an average price of $247.62 ³² per common share. At December 31, 2025, $539.7 million ³³ remained available for repurchase under the share repurchase program. Subsequent to December 31, 2025 and through February 6, 2026, the company repurchased 470,930 ³⁴ common shares at an aggregate cost of $130.0 million ³⁵ and an average price of $276.04 ³⁶ per common share. On November 5, 2025, the Board renewed the authorized share repurchase program to an aggregate amount of up to $750.0 million ³⁷. On February 11, 2026, the Board approved a quarterly dividend of $0.41 ³⁸ per common share.

Net income available to RenaissanceRe common shareholders was $2,646,959,000 ³⁹ in 2025, compared to $1,834,985,000 ⁴⁰ in 2024. The company generated an annualized return on average common equity of 25.9% ⁴¹ in 2025, compared to 19.3% ⁴² in 2024. Book value per common share increased from $195.77 ⁴³ at December 31, 2024 to $247.00 ⁴⁴ at December 31, 2025, a 26.2% ⁴⁵ increase, or a 27.0% ⁴⁶ increase after considering the change in accumulated dividends. Total gross premiums written were $11,738,420,000 ⁴⁷ in 2025, compared to $11,733,066,000 ⁴⁸ in 2024. Net premiums earned were $9,901,182,000 ⁴⁹ in 2025, compared to $10,095,760,000 ⁵⁰ in 2024. Underwriting income was $1,270,043,000 ⁵¹ in 2025, compared to $1,622,324,000 ⁵² in 2024. The combined ratio was 87.2% ⁵³ in 2025, compared to 83.9% ⁵⁴ in 2024. Net investment income was $1,703,475,000 ⁵⁵ in 2025, compared to $1,654,289,000 ⁵⁶ in 2024. Net realized and unrealized gains on investments were $1,181,268,000 ⁵⁷ in 2025, compared to net realized and unrealized losses of $27,840,000 ⁵⁸ in 2024.

The company's growth strategy focuses on its three competitive advantages: superior customer relationships, superior risk selection, and superior capital management. The company seeks to offer stable, predictable and consistent risk-based pricing and prompt turnaround on claims, aiming to be a trusted long-term partner to customers for assessing and managing risk and delivering responsive solutions. The company pursues a disciplined approach to underwriting, selecting risks it believes will produce a portfolio with an attractive return, subject to prudent risk constraints, utilizing a combination of proprietary data sets, sophisticated risk modelling capabilities, market leading risk selection tools such as REMS© exposure management system, and the expertise and judgment of experienced underwriters. The company aims to match the portfolio of risk it builds with the most appropriate form(s) of capital, accessing capital through joint ventures, managed funds, ceded retrocession, debt and equity markets, and other structures to support underwriting opportunities. The company's Capital Partners unit aims to leverage access to business and underwriting capabilities on an efficient capital base, develop fee income, generate performance fees, diversify the portfolio, and provide attractive risk-adjusted returns to capital providers. The company continually explores appropriate and efficient ways to address the risk management needs of clients and the impact of various regulatory and legislative changes on operations, and from time to time considers diversification into new opportunities through organic growth, formation of new joint ventures or managed funds, or acquisition of or investment in other companies or books of business.

The company's underwriting expense ratio improved by 2.0 percentage points in the Property segment, driven by a 1.6 percentage point improvement in the acquisition expense ratio due to an increase in net reinstatement premiums primarily related to the 2025 Large Loss Events and a decrease in acquisition costs on certain other property business. The underwriting expense ratio for the Casualty and Specialty segment was 33.5% ⁵⁹ in 2025, compared to 33.6% ⁶⁰ in 2024. The company's effective tax rate increased significantly due to the implementation of the Bermuda Corporate Income Tax Act 2023, which became effective January 1, 2025, imposing a 15% ⁶¹ corporate income tax on profits generated in Bermuda (except for profits earned by joint ventures and managed funds). The company generally expects that profits generated in Bermuda on or after January 1, 2025 by consolidated joint ventures and managed funds, except to the extent those profits are attributable to redeemable noncontrolling interests, will also be taxed at 15% ⁶² as a result of the enactment or expected enactment of the Pillar II Rules by many jurisdictions in which the company operates.

The company employs 1,040 ⁶³ people worldwide as of February 6, 2026, compared to 945 ⁶⁴ as of February 7, 2025 and 925 ⁶⁵ as of February 14, 2024. Of these employees, 249 ⁶⁶ were located in Bermuda, 270 ⁶⁷ in the U.S. and Canada, 492 ⁶⁸ in Europe and 29 ⁶⁹ in the Asia-Pacific region. The company continues to invest in and improve REMS©, incorporating underwriting and modeling experience and adding proprietary software and industry data. The company uses both cloud-based platforms and services and off-site, secure data centers in North America and Europe for its core applications. The company maintains an ongoing internal third-party cybersecurity risk assessment program to identify potential cybersecurity threats associated with the use of third-party service providers.

The company's Board authorized a share repurchase program in an aggregate amount of up to $750.0 million ⁷⁰ on November 5, 2025 and again on February 11, 2026. At December 31, 2025, $539.7 million ⁷¹ remained available for repurchase under the share repurchase program. The company declared and paid dividends per common share of $1.60 ⁷² in 2025, compared to $1.56 ⁷³ in 2024. On February 11, 2026, the Board approved a quarterly dividend of $0.41 ⁷⁴ per common share payable on March 31, 2026. The filing does not provide specific R&D spending levels or capital expenditure plans.

The company faces structural headwinds from the trend towards increasingly frequent and severe climate events, which could exacerbate potential exposure to losses from natural perils. The company believes that climate-related change and shifting economic and demographic trends in catastrophe exposed regions may contribute to increases in the average economic value of expected losses. The company also faces headwinds from social inflation trends, including increased litigation, expanded theories of liability and higher jury awards, which have adversely impacted underwriting results over recent periods and are expected to continue. The company's exposure to these uncertainties is more pronounced in its casualty business, where claims can typically be made for many years. The company also faces constraints from the highly competitive nature of the (re)insurance industry, which is historically cyclical, and rates have recently decreased in certain lines of business. The company believes the reinsurance industry will remain cyclical and that it may return to soft market conditions in the future. Additionally, increased access to capital, new technologies including artificial intelligence, and other factors may reduce the duration or eliminate or significantly lessen the impact of any current or future hard reinsurance underwriting market.

The company faces constraints from the regulatory systems under which it operates, which could restrict its ability to operate, increase costs, or otherwise adversely impact it. The company's operating subsidiaries conduct business globally and are subject to varying degrees of regulation and supervision in multiple jurisdictions, including Bermuda, the U.S., the U.K., Switzerland, Ireland, Singapore, and Australia. The company is subject to increasing governmental and regulatory initiatives and scrutiny related to climate-related risk and greenhouse gas emissions, including the implementation of the International Sustainability Standards Board requirements and enhanced expectations from the Prudential Regulation Authority in the U.K. and FINMA in Switzerland. The company also faces risks related to changes in Bermuda law and regulations, including the Corporate Income Tax Act 2023 which imposes a 15% ⁷⁵ corporate income tax effective January 1, 2025. The company is also subject to risks from the OECD's Pillar II Rules, which could cause additional top-up taxes. The company's investment portfolio is subject to market-wide risks and fluctuations, including risks relating to general economic conditions, inflation, market volatility, interest rate fluctuations, foreign currency risk, commodity risk, liquidity risk and credit and default risk.

The company has substantial exposure to natural and non-natural catastrophic events, with a relatively large percentage of coverage exposures historically concentrated in natural disasters in the U.S. Southeast or West Coast, and significant exposure globally. The net negative impact on net income available to RenaissanceRe common shareholders from the 2025 Large Loss Events was $785.7 million ⁷⁶, compared to $660.5 million ⁷⁷ from the 2024 Large Loss Events. The company's claims and claim expense reserves are subject to inherent uncertainties, and as of December 31, 2025, total reserves were $22,302,345,000 ⁷⁸, with a sensitivity analysis for the Property segment showing a potential increase of $498,853,000 ⁷⁹ (2.2% ⁸⁰ of reserves) or decrease of $340,741,000 ⁸¹ (1.5% ⁸² of reserves) in a reasonable range of possible outcomes. The company depends on a few insurance and reinsurance brokers for a preponderance of its business, with three brokerage firms accounting for 81.3% ⁸³ of gross premiums written in 2025, and the loss of a broker could result in the loss of a substantial portion of business. The company is subject to the Bermuda Corporate Income Tax Act 2023, which imposes a 15% ⁸⁴ corporate income tax on profits generated in Bermuda on or after January 1, 2025, and the OECD's Pillar II Rules could cause additional top-up taxes, with the net deferred tax asset established upon enactment of the CIT being approximately $640 million ⁸⁵ as of December 31, 2025.

Management's message emphasizes the company's mission to match desirable risk with efficient capital and its vision to be the best underwriter, aiming to produce superior returns for shareholders over the long term and fulfill the purpose to protect communities and enable prosperity. The strategic priorities emphasized for the period ahead are operating as an integrated system of three competitive advantages: superior customer relationships, superior risk selection, and superior capital management. Management believes that by consistently applying each of these three competitive advantages, the company can offer specialized services and products at times and in markets where capacity and alternatives may be limited. The company principally measures its financial success through long-term growth in tangible book value per common share plus the change in accumulated dividends, and believes it has delivered superior performance over time in respect of this metric.