RenRe posts underwriting income of $602m in Q2’25 as CoR drops to 75.1%

Bermuda-based reinsurer RenaissanceRe (RenRe) has posted underwriting income of $601.7 million for the second quarter of 2025, with an overall combined ratio of 75.1%, compared to $479.3 million and 81.1% respectively, in the second quarter of 2024.

The reinsurer has posted a solid set of results for the quarter, with Group-wide gross written premiums (GWP) reported at $3.42 billion, remaining relatively flat compared to Q2’24. Net premiums written (NPW) dipped a little to $2.77 billion this quarter compared to $2.83 billion in Q2’24. Net premiums earned (NPE) for the quarter are $2.41 billion compared to $2.54 billion in Q2’24.

Looking at top-line growth by segment, in property, the reinsurer’s GWP decreased by 1.2% to $1.73 billion from Q2’24’s $1.75 billion. This decrease of $21.2 million, according to RenRe, was primarily driven by an increase in the catastrophe class of $98.1 million, or 7.8%, driven by strong mid-year renewals reflecting organic growth on existing clients, and new underwriting opportunities, including in US catastrophe-exposed business.

However, this was offset by a decrease in the other property class of $119.3 million, primarily reflecting premium adjustments, in part due to rate decreases in the excess and surplus business, explained RenRe.

The segment’s NPE decreased by $112.8 million, or 11.5%, primarily driven by reductions in other property class GWP, and an increase in ceded premiums written in 2024, which continued to impact net premiums earned in 2025.

Within property, net claims and claim expense ratio for the current accident year improved by 6.7 percentage points, due to the relatively low level of catastrophe losses in the quarter, as compared to Q2’24, which had a 7.7 percentage point impact from large losses.

During the quarter, the property segment benefited from net favorable development of $131.5 million in the catastrophe class, primarily from the weather-related large losses in 2021, 2022, and 2023, and also net favorable development of $135.1 million in the other property class, primarily due to reported losses coming in lower than expected.

Underwriting income for the property segment increased to $630 million in Q2’25 compared to $451 million in Q2’24, as the combined ratio strengthened to 27.4% from 53.9%.

In RenRe’s casualty and specialty segment, GPW increased by $16.8 million, or 1% to $1.68 billion, driven by increases mainly in the credit and specialty classes, which were largely offset by a net decrease within the casualty lines of business. For Q2’25, NPW decreased by 2.4%, driven by an increase in RenRe’s retrocessional purchases to $1.44 billion.

For the segment, net claims and claim expense ratio – current accident year increased by 0.3 percentage points due to the impact of higher attritional losses, primarily within the casualty lines of business, partly offset by a lower impact from large losses as compared to Q2 2024. Underwriting expense ratio increased 2.0 percentage points, and the segment’s underwriting income saw a loss of $28.4 million, compared with a gain of $28 million a year earlier.

RenRe’s other driver of profit is fee income, which increased by 12.9% from Q2’24 to $95 million in Q2’25.

The reinsurer’s annualised return on average common equity for the quarter is 33.7% and annualised operating return on average common equity of 24.2%.

For Q2’25, the total investment result hit $762.8 million, including net investment income of $413.1 million and mark-to-market gains of $349.7 million.

The reinsurer also repurchased approximately 1.6 million common shares at an aggregate cost of $376.4 million and an average price of $242.18 per common share in Q2’25.

All in all, RenRe achieved net income of $826.5 million for the second quarter of 2025, an increase on the prior year’s $495 million, with operating income of $594.6 million, compared with $650.8 million in Q2’24.

Kevin J. O’Donnell, President and Chief Executive Officer, RenRe, commented, “We delivered outstanding results this quarter, reporting 24.2% annualised operating return on average common equity and 10.4% year-to-date growth in tangible book value per common share plus change in accumulated dividends. Underwriting and fee income reached record highs, and investment income remained near peak levels.

“At the mid-year renewals, our partnership approach and ability to provide lead quotes and increased capacity to our customers enabled us to grow into attractive property catastrophe opportunities at rates and terms that outperformed the broader market. Our performance this quarter reflects the continuing strength of our business and the powerful execution of our team. As we look forward, the strength of our earnings base combined with persistent favourable underwriting and investment environments position us to continue delivering substantial value for our shareholders.”

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