Renaissancere Hldgs — Financial Results
Strong Earnings Growth Despite Heavy Catastrophe Losses in 2025
| Metric | 2025 | 2024 |
|---|---|---|
| Net income available to common shareholders | $2.65B | $1.83B |
| Diluted EPS | $56.03 | $35.21 |
| Return on average common equity | 25.9% | 19.3% |
| Book value per share + accumulated dividends (change) | +27.0% | +19.4% |
RenaissanceRe delivered significantly stronger earnings in 2025 despite absorbing $785.7 million in net losses (after sharing with third-party investors) from major catastrophe events. The improvement was driven largely by a $1.2 billion swing in investment gains. Book value per share — the company's preferred measure of long-term performance — rose 26.2% to $247.00.
California Wildfires Were the Dominant Loss Event, Costing More Than All 2024 Disasters Combined
| Event | Net negative impact on underwriting result | Impact on combined ratio (ppts) |
|---|---|---|
| California Wildfires | $1.13B | 12.3 |
| Hurricane Melissa | $88.6M | 0.9 |
| Other 2025 events | $190.2M | 2.1 |
| Total 2025 | $1.41B | 15.3 |
| Total 2024 large losses | $847.4M | 8.8 |
The January 2025 California Wildfires alone caused more underwriting damage than the entire roster of 2024 catastrophes including Hurricanes Milton and Helene. After accounting for third-party investors absorbing their share ($489.2M) and a new tax benefit ($138.9M), the net hit to RenaissanceRe shareholders from all 2025 large losses was $785.7 million.
Property Segment Remained Highly Profitable, Casualty Segment Slipped into Loss
| Segment | Combined ratio 2025 | Combined ratio 2024 |
|---|---|---|
| Property | 61.4% | 57.2% |
| Casualty and Specialty | 104.4% | 100.4% |
The Property segment (catastrophe reinsurance) stayed solidly profitable despite the wildfires, aided by $1.09 billion in favorable reserve development (meaning prior years' losses cost less than originally estimated). The Casualty and Specialty segment tipped into an underwriting loss, driven by large-loss event impacts, higher attritional losses (routine, everyday claims) in casualty lines, and $119.1 million in accounting adjustments tied to the 2023 Validus acquisition.
Investment Portfolio Swung from Near-Zero to $1.2 Billion in Gains
| Category | 2025 gains/(losses) | 2024 gains/(losses) |
|---|---|---|
| Fixed maturity investments | $504.0M | $(382.6M) |
| Commodity-related (gold futures) | $415.5M | $76.5M |
| Equity-related | $188.3M | $13.3M |
| Total realized/unrealized | $1.18B | $(27.8M) |
Falling interest rates in 2025 pushed bond prices up, generating large gains on the fixed income portfolio — the opposite of 2024. The company also benefited from rising gold prices via commodity futures positions. Net investment income (the recurring coupon/interest income) also grew modestly to $1.70 billion, though the portfolio's yield dipped from 4.9% to 4.2% as rates declined.
Bermuda Corporate Tax Now a Real Cost for the First Time
| 2025 | 2024 | |
|---|---|---|
| Income tax expense | $396.3M | $32.6M |
| Increase | $363.7M | — |
Bermuda introduced a 15% corporate income tax (CIT) effective January 1, 2025, ending the island's longstanding tax-free status. This added $363.7 million in new tax expense in a single year. The Bermuda government partially offset this with substance-based tax credits for companies with genuine local operations, which benefited RenaissanceRe and are expected to continue doing so.
$1.6 Billion in Share Buybacks Signals Confidence in Valuation
RenaissanceRe repurchased $1.6 billion of its own shares during 2025, more than double the $666.9 million bought back in 2024. This reduced shares outstanding from roughly 50 million to 44 million, which mechanically boosts earnings per share. Management stated they view buybacks as the right use of excess capital when shares trade at what they consider attractive prices, while still prioritizing deployment into profitable underwriting business first.