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Item 2 — Management's Discussion and Analysis
Renaissancere Holdings Ltd. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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The following is a discussion and analysis of our results of operations for the three and six months ended June 30, 2026 and 2025, as well as our liquidity and capital resources at June 30, 2026. This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in this filing and the audited consolidated financial statements and notes thereto contained in our Form 10-K for the fiscal year ended December 31, 2025. This filing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results described or implied by these forward-looking statements. Refer to “Note on Forward-Looking Statements.”
In this Form 10-Q, references to “RenaissanceRe” refer to RenaissanceRe Holdings Ltd. (the parent company) and references to “we,” “us,” “our” and the “Company” refer to RenaissanceRe Holdings Ltd. together with its subsidiaries, unless the context requires otherwise. Defined terms used throughout this Form 10-Q are included in the “Glossary of Defined Terms” at the beginning of this Form 10-Q.
All dollar amounts referred to in this Form 10-Q are in U.S. dollars unless otherwise indicated.
Due to rounding, numbers presented in the tables included in this Form 10-Q may not add up precisely to the totals provided.
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INDEX TO MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Page
OVERVIEW 57
SUMMARY OF CRITICAL ACCOUNTING ESTIMATES 59
SUMMARY RESULTS OF OPERATIONS 60
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES 82
Financial Condition 82
Liquidity and Cash Flows 82
Capital Resources 87
Reserve for Claims and Claim Expenses 88
Investments 89
Ratings 91
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION 92
CURRENT OUTLOOK 94
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OVERVIEW
RenaissanceRe is a global provider of reinsurance and insurance. We provide property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, and headquartered in Bermuda, we have offices across North America, Europe, and the Asia-Pacific region.
Our mission is to match desirable risk with efficient capital, and our vision is to be the best underwriter. We believe that this will allow us to produce superior returns for our shareholders over the long term, and enable our purpose to protect communities and enable prosperity. We seek to accomplish these goals by delivering a value proposition composed of leadership, expertise and partnership, through our operation as an integrated system of three competitive advantages: superior risk selection, superior customer relationships and superior capital management.
Our current business strategy focuses predominantly on writing reinsurance. We apply our reinsurance lens of approaching risks as a portfolio to the insurance business that we write, primarily through delegated authority arrangements. Through our Capital Partners unit we create and manage innovative joint ventures and managed funds, which provide access to the portfolios our underwriters build. Additionally, we pursue several other opportunities, such as executing customized reinsurance transactions to assume or cede risk, and managing certain strategic investments. We continually explore appropriate and efficient ways to address the risk management needs of our clients and the impact of various regulatory and legislative changes on our operations. From time to time, we consider diversification into new opportunities, either through organic growth, the formation of new joint ventures or managed funds, or the acquisition of, or investment in, other companies or books of business of other companies.
Our business consists of the following reportable segments: (1) Property, which is comprised of catastrophe and other property (re)insurance, and (2) Casualty and Specialty, which is comprised of general casualty, professional liability, credit and other specialty (re)insurance. The underwriting results of our consolidated operating subsidiaries and underwriting platforms are included in our Property and Casualty and Specialty segment results as appropriate.
We have three principal drivers of profit that generate diversified earnings streams for our business: underwriting income, fee income, and investment income. Underwriting income is the income that we earn from our core underwriting business. By matching desirable risk with efficient capital and accepting the volatility that this business brings, we believe that we can generate superior returns over the long-term. Fee income is the income that we earn primarily from managing third-party capital in our Capital Partners unit and is composed of management fee income and performance fee income. Investment income is income derived from the investment portfolio that we maintain to support our business. We take a disciplined approach in building a relatively conservative, well-structured investment portfolio, with a focus on fixed income investments. Compared to underwriting income, we view fee income, especially management fee income, and investment income, as being relatively less volatile and as diversifying sources of income.
We principally measure our financial success through long-term growth in tangible book value per common share plus the change in accumulated dividends. We believe this metric is the most appropriate measure of our financial performance, and in respect of which we believe we have delivered superior performance over time.
Revenues and Expenses
Our revenues are principally derived from three sources: (1) net premiums earned from the reinsurance and insurance policies we sell; (2) net investment income and net realized and unrealized gains from the investment of our capital funds and the investment of the cash we receive on the policies which we sell; and (3) fees received from our joint ventures, managed funds and structured reinsurance products, which are primarily reflected in redeemable noncontrolling interest or as an offset to acquisition or operational expenses.
Our expenses primarily consist of: (1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; (2) acquisition costs, which typically represent a percentage of the premiums we write; (3) operational expenses, which primarily consist of personnel expenses, rent and other expenses; (4) corporate expenses, which include certain executive, legal and consulting expenses, costs for research and development, transaction and integration-related expenses, and other miscellaneous costs, including those
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associated with operating as a publicly traded company; (5) interest and dividends related to our debt, preference shares and common shares; and (6) income taxes.
The underwriting results of an insurance or reinsurance company are discussed frequently by reference to its net claims and claim expense ratio, underwriting expense ratio, and combined ratio. The net claims and claim expense ratio is calculated by dividing net claims and claim expenses incurred by net premiums earned. The underwriting expense ratio is calculated by dividing underwriting expenses (acquisition expenses and operational expenses) by net premiums earned. The combined ratio is the sum of the net claims and claim expense ratio and the underwriting expense ratio. A combined ratio below 100% indicates profitable underwriting prior to the consideration of investment income. A combined ratio over 100% indicates unprofitable underwriting prior to the consideration of investment income. We also discuss our net claims and claim expense ratio on a current accident year basis and a prior accident years basis. The current accident year net claims and claim expense ratio is calculated by taking current accident year net claims and claim expenses incurred, divided by net premiums earned. The prior accident years net claims and claim expense ratio is calculated by taking prior accident years net claims and claim expenses incurred, divided by net premiums earned.
Impact of Redeemable Noncontrolling Interest in our Results
We manage several entities - DaVinci, Fontana, Medici, and Vermeer - where we control the decision making authority through ownership of the voting interests but do not own all of the economic interest. As a result of our control, we include the full financial results of these entities in our consolidated financial statements. However, since we do not own all of the economic interest in these entities, we do not ultimately retain all of the economic outcomes they generate. Rather, portions of these entities’ economic outcomes are due to third-party investors who hold noncontrolling interests in these entities and are ultimately allocated to such third-party investors.
These entities’ economic outcomes may include underwriting results, investment results, and foreign exchange impacts, among other items. For example, if one of these entities realizes a financial gain or loss from its underwriting or investment activities, the full amount of such gain or loss is shown in net income (loss) on our consolidated statements of operations. But only the portion of such gain or loss that represents our investment in such entity is reflected in net income (loss) attributable to RenaissanceRe. The remainder, which is ultimately allocated to such third-party investors in those entities, is shown separately in net (income) loss attributable to redeemable noncontrolling interests.
Refer to “Note 8. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts our financial results.
Effects of Inflation
General economic inflation has increased over the past few years compared to recent historical norms, and there is a risk of inflation remaining elevated for an extended period, which could cause claims and claims related expenses to increase, impact the performance of our investment portfolio, or have other adverse effects. This risk may be exacerbated by geopolitical factors and global supply chain issues or tariffs, among other factors, from time to time. Central bank policy and changes to interest rates may also increase the risk of inflationary pressures. The actual effects of the current and potential future increase in inflation on our results cannot be accurately known until, among other items, claims are ultimately settled. The duration and severity of an inflationary period cannot be estimated with precision. We consider the anticipated effects of inflation on us in our catastrophe loss models and on our investment portfolio. Our estimates of the potential effects of inflation are also considered in pricing and in estimating reserves for unpaid claims and claim expenses. The potential exists, after a catastrophe loss, for the development of inflationary pressures in a local economy.
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SUMMARY OF CRITICAL ACCOUNTING ESTIMATES
Our critical accounting estimates include “Claims and Claim Expense Reserves,” “Premiums and Related Expenses,” “Reinsurance Recoverables,” “Fair Value Measurements and Impairments” and “Income Taxes,” and are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K for the year ended December 31, 2025. There have been no material changes to our critical accounting estimates as disclosed in our Form 10-K for the year ended December 31, 2025.
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SUMMARY OF RESULTS OF OPERATIONS
Below is a discussion of the results of operations for the second quarter of 2026, compared to the second quarter of 2025.
Three months ended June 30, 2026 2025 Change
(in thousands, except per share amounts and percentages)
Statement of Operations Highlights
Gross premiums written $ 2,994,424 $ 3,421,180 $ (426,756)
Net premiums written $ 2,276,960 $ 2,770,270 $ (493,310)
Net premiums earned $ 2,199,521 $ 2,412,154 $ (212,633)
Net claims and claim expenses incurred 942,378 1,042,123 (99,745)
Acquisition expenses 563,279 642,605 (79,326)
Operational expenses 94,747 125,738 (30,991)
Underwriting income (loss) $ 599,117 $ 601,688 $ (2,571)
Net investment income $ 432,489 $ 413,108 $ 19,381
Equity in earnings (losses) of other ventures (1) 17,829 20,333 (2,504)
Net realized and unrealized gains (losses) on investments 121,628 349,720 (228,092)
Total investment result (1) $ 571,946 $ 783,161 $ (211,215)
Net income (loss) $ 978,338 $ 1,163,690 $ (185,352)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 654,234 $ 826,507 $ (172,273)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted $ 15.48 $ 17.20 $ (1.72)
Dividends per common share $ 0.41 $ 0.40 $ 0.01
Key Ratios
Net claims and claim expense ratio – current accident year 51.9 % 54.4 % (2.5) pts
Net claims and claim expense ratio – prior accident years (9.1) % (11.2) % 2.1 pts
Net claims and claim expense ratio – calendar year 42.8 % 43.2 % (0.4) pts
Underwriting expense ratio 30.0 % 31.9 % (1.9) pts
Combined ratio 72.8 % 75.1 % (2.3) pts
Return on average common equity - annualized 24.0 % 33.7 % (9.7) pts
Book Value June 30, 2026 March 31, 2026 Change
Book value per common share $ 264.77 $ 250.48 $ 14.29
Accumulated dividends per common share 30.50 30.09 0.41
Book value per common share plus accumulated dividends $ 295.27 $ 280.57 $ 14.70
Quarterly change in book value per common share (2) 5.7 %
Quarterly change in book value per common share plus change in accumulated dividends (2) 5.9 %
(1)In the fourth quarter of 2025, we revised our presentation of “total investment results” to include equity in earnings (losses) of other ventures. Comparative periods presented have been updated to conform to the current presentation.
(2)Represents the percentage change during the three months ended June 30, 2026.
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Results of Operations Overview
Net income available to RenaissanceRe common shareholders was $654.2 million in the second quarter of 2026, compared to $826.5 million in the second quarter of 2025, a decrease of $172.3 million. In the second quarter of 2026, we generated an annualized return on average common equity of 24.0%. Our book value per common share increased from $250.48 at March 31, 2026 to $264.77 at June 30, 2026, a 5.7% increase, or a 5.9% increase after considering the change in accumulated dividends paid to our common shareholders.
Significant items affecting our financial performance during the second quarter of 2026, on a comparative basis to the second quarter of 2025, included:
•Underwriting Results
–underwriting income of $599.1 million, remained consistent with the second quarter of 2025, decreasing by $2.6 million, and resulted in a combined ratio of 72.8%, an improvement of 2.3 percentage points, primarily driven by:
◦a lower level of catastrophe losses in the second quarter of 2026, compared to the second quarter of 2025, partially offset by less favorable prior year development; and
◦an improvement of 1.9 percentage points to the underwriting expense ratio, largely due to the Bermuda tax credits recorded in the second quarter of 2026, and a decrease in purchase accounting adjustments compared to the second quarter of 2025.
–gross premiums written and net premiums written decreased by $426.8 million and $493.3 million, respectively, reflecting rate reductions and exposure reductions compared to the second quarter of 2025, as well as an increase in retrocessional coverage purchased within the Casualty and Specialty segment.
•Investment Results
–total investment result decreased by $211.2 million, driven by:
◦a decrease of $228.1 million in net realized and unrealized gains (losses) on investments, primarily reflecting an increase in net losses on fixed maturity-related investments and commodity-related investments as a result of increases in market yields and decreases in gold futures prices, respectively, and partially offset by
◦an increase in net gains on equity-related investments primarily due to increased exposure to equity-futures and favorable price changes.
–net investment income of $432.5 million included $118.1 million attributable to redeemable noncontrolling interests, which was allocated to third-party investors and not retained by us.
•Fee Income
–income of $83.0 million, a decrease of $11.9 million, primarily driven by a decrease in management fee income, largely due to a recapture of previously deferred management fees in the second quarter of 2025 which did not repeat in the second quarter of 2026, and lower management fees in DaVinci and Fontana due to lower net premiums earned.
–included $59.4 million of fee income recorded in net income (loss) attributable to redeemable noncontrolling interests, which is not included in our underwriting income (loss).
•Net Income (Loss) Attributable to Redeemable Noncontrolling Interests
–income of $315.3 million, driven by strong underwriting and investment income in our joint ventures and managed funds, and a decrease in fees, partially offset by an increase in net realized and unrealized losses, resulting in a $13.1 million decrease compared to the second quarter of 2025.
–this represents the portion of our net income (loss) that was allocated to third-party investors and not retained by us.
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Underwriting Results by Segment
Property Segment
Below is a summary of the underwriting results and ratios for our Property segment:
Three months ended June 30, 2026 2025 Change
(in thousands, except percentages)
Gross premiums written $ 1,551,685 $ 1,731,935 $ (180,250)
Net premiums written $ 1,203,424 $ 1,325,557 $ (122,133)
Net premiums earned $ 881,611 $ 868,010 $ 13,601
Net claims and claim expenses incurred (7,079) (7,930) 851
Acquisition expenses 175,436 174,200 1,236
Operational expenses 70,579 71,569 (990)
Underwriting income (loss) $ 642,675 $ 630,171 $ 12,504
Net claims and claim expenses incurred – current accident year $ 250,393 $ 258,646 $ (8,253)
Net claims and claim expenses incurred – prior accident years (257,472) (266,576) 9,104
Net claims and claim expenses incurred – total $ (7,079) $ (7,930) $ 851
Net claims and claim expense ratio – current accident year 28.4 % 29.8 % (1.4) pts
Net claims and claim expense ratio – prior accident years (29.2) % (30.7) % 1.5 pts
Net claims and claim expense ratio – calendar year (0.8) % (0.9) % 0.1 pts
Underwriting expense ratio 27.9 % 28.3 % (0.4) pts
Combined ratio 27.1 % 27.4 % (0.3) pts
Property Gross Premiums Written
•Gross premiums written reflected a successful mid-year renewal as we executed on market opportunities in the catastrophe class and optimized our property portfolio. The decrease of $180.3 million, or 10.4%, was primarily driven by:
–a decrease in the catastrophe class of $215.3 million, or 15.8%, driven by rate reductions during the mid-year renewals and a decrease in gross reinstatement premiums of $27.5 million, offset in part by opportunities for growth on existing clients and new underwriting opportunities, including in U.S. catastrophe-exposed business; partially offset by
–an increase of $35.0 million, or 9.5%, in the other property class, as the second quarter of 2025 reflected downwards premium adjustments, in part due to rate decreases in the excess and surplus business. Otherwise, gross premiums written in the other property class were roughly flat.
Property Ceded Premiums Written
Three months ended June 30, 2026 2025 Change
(in thousands)
Ceded premiums written $ 348,261 $ 406,378 $ (58,117)
Due to the potential volatility of the reinsurance contracts which we sell, we purchase reinsurance to reduce our exposure to large losses and to help manage our risk portfolio. To the extent that appropriately priced coverage is available, we anticipate continued use of retrocessional reinsurance to reduce the impact of large losses on our financial results and to manage our portfolio of risk. The buying of ceded reinsurance in our Property segment is based on market opportunities and is not based on placing a specific reinsurance program each year.
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•Ceded premiums written decreased by $58.1 million, or 14.3%, driven by:
–the non-deployment of Upsilon through the June 1st renewals.
Property Net Premiums Earned
•Net premiums earned increased by $13.6 million, or 1.6%, driven by:
–an increase in the other property class of $41.5 million, or 13.2%, as the second quarter of 2025 reflected higher downwards premium adjustments, in part due to rate decreases in the excess and surplus business; partially offset by
–a decrease in net premiums earned in the catastrophe class of $27.9 million, or 5.0%, primarily driven by a $31.0 million decrease in net reinstatement premiums compared to the second quarter of 2025.
Property Underwriting Results
•Net claims and claim expense ratio remained consistent with the second quarter of 2025, and included:
–a 1.4 percentage point improvement in the current accident year net claims and claim expense ratio, due to a lower level of catastrophe losses in the quarter; and
–net favorable development of prior accident years of $257.5 million, or 29.2%, driven by:
◦net favorable development of $132.7 million in the catastrophe class, primarily from the large loss events in 2021, 2022, 2024 and 2025 and small events across accident years; and
◦net favorable development of $124.7 million in the other property class, primarily due to reported losses coming in lower than expected and attritional loss experience.
•Underwriting expense ratio remained relatively flat quarter over quarter, as expense growth was largely offset by the Bermuda tax credits.
•Combined ratio remained consistent with the second quarter of 2025, benefiting from the low current accident year net losses and net favorable development of prior accident years.
Refer to “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional information related to the prior year development of net claims and claim expenses.
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Casualty and Specialty Segment
Below is a summary of the underwriting results and ratios for our Casualty and Specialty segment:
Three months ended June 30, 2026 2025 Change
(in thousands, except percentages)
Gross premiums written $ 1,442,739 $ 1,689,245 $ (246,506)
Net premiums written $ 1,073,536 $ 1,444,713 $ (371,177)
Net premiums earned $ 1,317,910 $ 1,544,144 $ (226,234)
Net claims and claim expenses incurred 949,457 1,050,053 (100,596)
Acquisition expenses 387,843 468,405 (80,562)
Operational expenses 24,168 54,169 (30,001)
Underwriting income (loss) $ (43,558) $ (28,483) $ (15,075)
Net claims and claim expenses incurred – current accident year $ 891,410 $ 1,053,187 $ (161,777)
Net claims and claim expenses incurred – prior accident years 58,047 (3,134) 61,181
Net claims and claim expenses incurred – total $ 949,457 $ 1,050,053 $ (100,596)
Net claims and claim expense ratio – current accident year 67.6 % 68.2 % (0.6) pts
Net claims and claim expense ratio – prior accident years 4.4 % (0.2) % 4.6 pts
Net claims and claim expense ratio – calendar year 72.0 % 68.0 % 4.0 pts
Underwriting expense ratio 31.3 % 33.8 % (2.5) pts
Combined ratio 103.3 % 101.8 % 1.5 pts
Casualty and Specialty Gross Premiums Written
•Gross premiums written decreased by $246.5 million, or 14.6%, principally due to:
–proactive exposure reductions across the general casualty, professional liability and other specialty classes;
–changes in premium estimates on business underwritten in prior years in the other specialty class, largely from rate pressure in cyber; and
–a decrease in the credit class driven by opportunistic deals written during the second quarter of 2025 that were not up for renewal in the second quarter of 2026.
Casualty and Specialty Ceded Premiums Written
Three months ended June 30, 2026 2025 Change
(in thousands)
Ceded premiums written $ 369,203 $ 244,532 $ 124,671
We purchase reinsurance to reduce our exposure to large losses and to help manage our risk portfolio. To the extent that appropriately priced coverage is available, we anticipate continued use of retrocessional reinsurance to reduce the impact of large losses on our financial results and to manage our portfolio of risk. As in our Property segment, the buying of ceded reinsurance in our Casualty and Specialty segment is based on market opportunities and is not based on placing a specific reinsurance program each year.
•Ceded premiums written increased by $124.7 million, or 51.0%, driven by:
–an increase in the amount of quota share retrocessional coverage purchased to support our gross-to-net strategy across the portfolio, most notably within the casualty classes.
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Casualty and Specialty Net Premiums Written
•Net premiums written decreased by $371.2 million, or 25.7%, primarily driven by:
–the decrease in gross premiums written, in addition to an increase in retrocessional purchases across the portfolio, particularly in the casualty classes.
Casualty and Specialty Underwriting Results
•Net claims and claim expense ratio increased by 4.0 percentage points, which included:
–net adverse development of prior accident years of $58.0 million, or 4.4%, resulting in an increase of 4.6 percentage points in the prior accident years net claims and claim expense ratio. The net adverse development in the second quarter of 2026 reflects:
◦$54.0 million, or 4.1 percentage points, from a shift of previously reported loss estimates for the Baltimore Bridge Collapse to Casualty and Specialty from the other property class;
◦$5.5 million, or 0.4 percentage points, of adverse impact from purchase accounting adjustments; and
◦net favorable development principally driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses from the other specialty and credit classes, offset by adverse development related to actuarial assumption changes principally impacting the general liability line of business; partially offset by
–a 0.6 percentage point improvement in the current accident year net claims and claim expense ratio, principally due to a lower impact of large loss events within the other specialty class compared to the second quarter of 2025.
•Underwriting expense ratio improved by 2.5 percentage points, driven by:
–a 1.7 percentage point improvement in the operating expense ratio, primarily due to the Bermuda tax credits and an increase in override management fees; and
–a 0.8 percentage point improvement in the acquisition expense ratio, primarily due to a decrease in purchase accounting adjustments.
•Combined ratio increased by 1.5 percentage points from the second quarter of 2025, primarily due to:
–adverse development from prior years, which included adverse development related to the Baltimore Bridge Collapse of 3.4 percentage points, after considering the impact of reinstatement premiums; partially offset by
–the improvements to the underwriting expense ratio.
See “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional information related to the prior year development of net claims and claim expenses.
Our relative mix of business between proportional business and excess of loss business has fluctuated in the past and will likely continue to do so in the future. Proportional business, which represents the majority of our Casualty and Specialty segment business, typically has a higher expense ratio and tends to be exposed to more attritional and frequent losses, while being subject to lower expected severity compared to traditional excess of loss business.
Fee Income
The table below shows the total fee income we earned from third-party capital management activities, including various joint ventures and managed funds, and certain structured reinsurance products.
Management fees are fees that we receive for the day-to-day management and oversight of our joint venture vehicles, managed funds and certain structured reinsurance products. Performance fees are based on the performance of the individual vehicles or products and may be zero or negative in a particular period.
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For example, large losses could potentially result in no performance fees or the reversal of previously accrued performance fees.
Three months ended June 30, 2026 2025 Change
(in thousands)
Management Fee Income
Joint ventures (1) $ 34,785 $ 41,435 $ (6,650)
Managed funds (2) 5,790 7,595 (1,805)
Structured reinsurance products and other (3) 7,563 7,377 186
Total management fee income 48,138 56,407 (8,269)
Performance Fee Income (Loss)
Joint ventures (1) 22,478 25,047 (2,569)
Managed funds (2) 708 4,396 (3,688)
Structured reinsurance products and other (3) 11,703 9,107 2,596
Total performance fee income (loss) 34,889 38,550 (3,661)
Total fee income $ 83,027 $ 94,957 $ (11,930)
(1)Joint ventures include DaVinci, Top Layer, Vermeer, and Fontana.
(2)Managed funds include Upsilon Fund, Medici and Medici UCITS, as well as certain third-party capital vehicles we manage through AlphaCat Managers.
(3)Structured reinsurance products and other includes certain reinsurance agreements and other vehicles through which we transfer risk to third-party capital.
•Total fee income decreased by $11.9 million, due to:
–a decrease in management fee income of $8.3 million, driven by:
◦the recapture of previously deferred management fees in the comparative period, which did not repeat in the current quarter;
◦lower management fees in DaVinci and Fontana due to lower net premiums earned; and
◦a decrease in management fees in Upsilon and AlphaCat due to the continued release of collateral associated with prior years’ contracts.
–a decrease in performance fees of $3.7 million, primarily driven by:
◦lower net favorable development of prior accident years in Upsilon.
•Our total fee income of $83.0 million included $59.4 million of fee income recorded in net income (loss) attributable to redeemable noncontrolling interests, which is not included in our underwriting income (loss).
The fee income we earned from third-party capital management activities and certain structured reinsurance products is recorded in multiple line items in our financial statements. The table below summarizes the impact of fee income on the financial statements.
Three months ended June 30, 2026 2025 Change
(in thousands)
Fee income recorded in net income (loss) attributable to redeemable noncontrolling interests $ 59,390 $ 82,465 $ (23,075)
Fee income recorded in underwriting income (loss) (1) 23,637 12,492 11,145
Total fee income $ 83,027 $ 94,957 $ (11,930)
(1)Reflects total fee income earned from third-party capital management activities and certain structured reinsurance products which is recorded through underwriting income (loss) as a decrease (increase) to operational expenses or acquisition expenses. During the three months ended June 30, 2026, $11.2 million of management fee income was recorded as a reduction to operational expenses (June 30, 2025 - $12.5 million) and $12.4 million of performance fee income was recorded as a reduction to acquisition expenses (June 30, 2025 - nominal).
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Investment Results
Net Investment Income
Three months ended June 30, 2026 2025 Change
(in thousands)
Fixed maturity investments trading $ 297,222 $ 282,173 $ 15,049
Short term investments 32,957 48,415 (15,458)
Equity investments
Fixed income exchange traded funds 26,119 6,528 19,591
Common stock (1) 676 615 61
Other investments
Catastrophe bonds 40,095 47,948 (7,853)
Fund and direct private equity investments (2) 33,333 21,692 11,641
Cash and cash equivalents 9,420 12,333 (2,913)
439,822 419,704 20,118
Investment expenses (7,333) (6,596) (737)
Net investment income $ 432,489 $ 413,108 $ 19,381
(1)In the fourth quarter of 2025, we revised the description of our “other equity investments” to “common stock.”
(2)In the fourth quarter of 2025, we revised the description of our “other investments - other” to “other investments - fund and direct private equity investments.”
•Net investment income increased by $19.4 million, primarily due to:
–higher average invested assets and portfolio reallocation, resulting in increased income from fixed income exchange traded funds.
•Net investment income of $432.5 million included $118.1 million of income attributable to redeemable noncontrolling interests, which was allocated to third-party investors and not retained by us.
Equity in Earnings (Losses) of Other Ventures
Three months ended June 30, 2026 2025 Change
(in thousands)
Equity in earnings (losses) of other ventures $ 17,829 $ 20,333 $ (2,504)
Equity in earnings (losses) of other ventures represents our pro-rata share of the net income from our investments in a select group of insurance and insurance-related companies, including the Tower Hill Companies and Top Layer. Except for Top Layer, which is recorded on a current quarter basis, equity in earnings (losses) of other ventures is recorded one quarter in arrears. The carrying value of these investments on our consolidated balance sheets, individually or in the aggregate, may differ from the realized value we may ultimately attain, perhaps significantly so.
•Equity in earnings of other ventures was relatively consistent with the second quarter of 2025.
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Net Realized and Unrealized Gains (Losses) on Investments
Three months ended June 30, 2026 2025 Change
(in thousands)
Fixed maturity-related investments (1) (2) $ (115,341) $ 149,510 $ (264,851)
Equity-related investments (1) (3) 217,292 111,118 106,174
Commodity-related investments (1) (4) (79,131) 33,253 (112,384)
Other investments
Catastrophe bonds (1,125) (14,016) 12,891
Fund and direct private equity investments (5) 99,933 69,855 30,078
Net realized and unrealized gains (losses) on investments $ 121,628 $ 349,720 $ (228,092)
(1)Refer to “Note 13. Derivative Instruments” in our “Notes to Consolidated Financial Statements” for additional information on investment-related derivatives.
(2)Includes fixed maturity investments and investment-related derivatives, which includes interest rate futures, credit default swaps and interest rate swaps.
(3)Includes equity investments and investment-related derivatives, which includes equity futures and warrants.
(4)Includes commodity-related derivatives, which includes commodity futures and commodity options.
(5)In the fourth quarter of 2025, we revised the description of our “other investments - other” to “other investments - fund and direct private equity investments.”
We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. As part of this strategy, we may use investment-related derivatives to obtain exposure to a particular financial market or to hedge portfolio risk. A large majority of our investments are invested in the fixed income markets and, therefore, our realized and unrealized holding gains and losses on investments are highly correlated to fluctuations in interest rates. As interest rates decline, we will tend to have realized and unrealized gains from our investment portfolio, and as interest rates rise, we will tend to have realized and unrealized losses from our investment portfolio.
•Net realized and unrealized gains on investments of $121.6 million were driven by:
–$217.3 million of net realized and unrealized gains on equity-related investments, primarily from equity futures being favorably impacted by equity market movements; and
–$99.9 million of net unrealized gains on fund and direct private equity investments, as a result of favorable equity market movements; partially offset by
–$115.3 million of net realized and unrealized losses on fixed maturity-related investments, primarily due to increases in market yields; and
–$79.1 million of net realized and unrealized losses on commodity-related investments, principally due to decreases in prices for gold futures.
•Net realized and unrealized gains on investments decreased by $228.1 million, mainly driven by:
–an increase in net realized and unrealized losses on fixed maturity-related investments of $264.9 million, primarily due to:
◦increases in market yields in the second quarter of 2026, compared to decreases in market yields in the second quarter of 2025; and
–an increase in net realized and unrealized losses on commodity-related investments of $112.4 million, principally due to:
◦decreases in gold futures prices in the second quarter of 2026, compared to increases in gold futures prices the second quarter of 2025; partially offset by
–an increase in net realized and unrealized gains on equity-related investments of $106.2 million, primarily due to:
◦increased exposure to equity-futures, coupled with more favorable price movements in the second quarter of 2026 compared to the second quarter of 2025.
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Refer to “Note 3. Investments” and “Note 13. Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information regarding our investments and derivatives we have entered into.
Net Foreign Exchange Gains (Losses)
Three months ended June 30, 2026 2025 Change
(in thousands)
Net foreign exchange gains (losses) $ (7,345) $ 8,660 $ (16,005)
Our functional currency is the U.S. dollar. We routinely write a portion of our business in currencies other than U.S. dollars and invest a portion of our cash and investment portfolio in those currencies. We are primarily impacted by foreign currency exposures associated with our underwriting operations and our investment portfolio, and may, from time to time, enter into foreign currency forward and option contracts to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities.
•Net foreign exchange losses increased by $16.0 million, driven by:
–losses attributable to third-party investors in Medici, which are allocated through net income (loss) attributable to redeemable noncontrolling interest, compared to gains in the second quarter of 2025.
Refer to “Note 13. Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information related to the foreign currency derivatives we have entered into.
Corporate Expenses
Three months ended June 30, 2026 2025 Change
(in thousands)
Corporate expenses $ 18,681 $ 23,781 $ (5,100)
Corporate expenses include certain executive, director, legal and consulting expenses, costs for research and development, and other miscellaneous costs, including those associated with operating as a publicly traded company. From time to time, we may revise the allocation of certain expenses between corporate and operational expenses to better reflect the characteristic of the underlying expense.
•Corporate expenses decreased by $5.1 million, primarily driven by:
–the Bermuda tax credits.
Income Tax Benefit (Expense)
Three months ended June 30, 2026 2025 Change
(in thousands)
Income tax benefit (expense) $ (139,400) $ (176,869) $ 37,469
We are subject to income taxes in the jurisdictions in which we operate. Our effective tax rate, which is based upon the expected annual effective tax rate, may fluctuate from period to period based on (i) the relative mix of income or loss reported by jurisdiction and the varying tax rates in each jurisdiction and (ii) the relative proportion of our net income which is not subject to tax because it is earned in Bermuda and attributable to redeemable noncontrolling interests.
•Income tax expense of $139.4 million was driven by:
–strong operating profits in the second quarter of 2026.
•Income tax expense decreased by $37.5 million, primarily driven by:
–a decrease in mark-to-market gains in the second quarter of 2026, compared to the second quarter of 2025.
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Net Income (Loss) Attributable to Redeemable Noncontrolling Interests
Three months ended June 30, 2026 2025 Change
(in thousands)
Redeemable noncontrolling interest - DaVinci $ 205,117 $ 218,453 $ (13,336)
Redeemable noncontrolling interest - Medici 26,313 38,993 (12,680)
Redeemable noncontrolling interest - Vermeer 64,783 57,425 7,358
Redeemable noncontrolling interest - Fontana 19,047 13,468 5,579
Net income (loss) attributable to redeemable noncontrolling interests $ 315,260 $ 328,339 $ (13,079)
•Net income attributable to redeemable noncontrolling interests decreased slightly from the second quarter of 2025, and was driven by:
–strong underwriting and investment income in our joint ventures and managed funds; and
–a decrease in management and performance fee income recorded in noncontrolling interests; partially offset by
–net realized and unrealized losses on investments in the investment portfolios of our joint ventures and managed funds in the second quarter of 2026, compared to gains in the second quarter of 2025.
•Net income attributable to redeemable noncontrolling interests of $315.3 million included $118.1 million of net investment income, partially offset by $31.9 million of net realized and unrealized losses on investments, as well as $59.4 million in management and performance fee income.
Refer to “Note 8. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests.
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SUMMARY OF RESULTS OF OPERATIONS
Below is a discussion of the results of operations for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Six months ended June 30, 2026 2025 Change
(in thousands, except per share amounts and percentages)
Statement of Operations Highlights
Gross premiums written $ 6,473,297 $ 7,576,683 $ (1,103,386)
Net premiums written $ 4,955,256 $ 6,213,799 $ (1,258,543)
Net premiums earned $ 4,383,135 $ 5,132,935 $ (749,800)
Net claims and claim expenses incurred 1,926,349 3,785,881 (1,859,532)
Acquisition expenses 1,085,129 1,290,040 (204,911)
Operational expenses 183,782 225,923 (42,141)
Underwriting income (loss) $ 1,187,875 $ (168,909) $ 1,356,784
Net investment income $ 852,991 $ 818,461 $ 34,530
Equity in earnings (losses) of other ventures (1) $ 38,314 $ 38,161 $ 153
Net realized and unrealized gains (losses) on investments (300,285) 682,660 (982,945)
Total investment result (1) $ 591,020 $ 1,539,282 $ (948,262)
Net income (loss) $ 1,494,168 $ 1,138,429 $ 355,739
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 938,769 $ 987,654 $ (48,885)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted $ 21.94 $ 20.30 $ 1.64
Dividends per common share $ 0.82 $ 0.80 $ 0.02
Key Ratios
Net claims and claim expense ratio – current accident year 52.2 % 82.8 % (30.6) pts
Net claims and claim expense ratio – prior accident years (8.3) % (9.0) % 0.7 pts
Net claims and claim expense ratio – calendar year 43.9 % 73.8 % (29.9) pts
Underwriting expense ratio 29.0 % 29.5 % (0.5) pts
Combined ratio 72.9 % 103.3 % (30.4) pts
Return on average common equity - annualized 17.2 % 20.1 % (2.9) pts
Book Value June 30, 2026 December 31, 2025 Change
Book value per common share $ 264.77 $ 247.00 $ 17.77
Accumulated dividends per common share 30.50 29.68 0.82
Book value per common share plus accumulated dividends $ 295.27 $ 276.68 $ 18.59
Year to date change in book value per common share 7.2 %
Year to date change in book value per common share plus change in accumulated dividends 7.5 %
(1)In the fourth quarter of 2025, we revised our presentation of “total investment results” to include equity in earnings (losses) of other ventures. Comparative periods presented have been updated to conform to the current presentation.
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Net income available to RenaissanceRe common shareholders was $938.8 million in the six months ended June 30, 2026, compared to $987.7 million in the six months ended June 30, 2025, a decrease of $48.9 million. In the six months ended June 30, 2026, we generated an annualized return on average common equity of 17.2%. Our book value per common share increased from $247.00 at December 31, 2025 to $264.77 at June 30, 2026, a 7.2% increase, or a 7.5% increase, after considering the change in accumulated dividends paid to our common shareholders.
Significant items affecting our financial performance during the six months ended June 30, 2026, on a comparative basis to the six months ended June 30, 2025, included:
•Underwriting Results
–underwriting income of $1.2 billion, an increase of $1.4 billion, resulting in an improvement in the combined ratio of 30.4 percentage points, driven primarily by:
◦a lower level of catastrophe losses in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
–gross premiums written and net premiums written decreased by $1.1 billion and $1.3 billion, respectively, reflecting lower reinstatement premiums due to the lower level of catastrophe losses in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, in addition to rate reductions and exposure reductions in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, and partially offset by growth opportunities.
•Investment Results
–total investment result decreased by $948.3 million, driven by:
◦an increase of $982.9 million in net realized and unrealized losses on investments, primarily reflecting an increase in net losses on fixed maturity-related investments and commodity-related investments as a result of increases in market yields and decreases in gold futures prices, respectively; partially offset by
◦an increase in net investment income of $34.5 million, largely due to higher average invested assets within our investment portfolio.
–net investment income of $853.0 million included $234.5 million attributable to redeemable noncontrolling interests, which was allocated to third-party investors and not retained by us.
•Fee Income
–income of $177.2 million, an increase of $51.7 million, primarily driven by an increase in performance fees due to a lower impact from large loss events in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
–included $131.6 million of fee income recorded in net income (loss) attributable to redeemable noncontrolling interests, which is not included in our underwriting income (loss).
•Net Income (Loss) Attributable to Redeemable Noncontrolling Interests
–income of $537.7 million, an increase of $404.6 million, primarily resulting from an increase in underwriting income in our joint ventures due to a lower impact of large loss events in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
–this represents the portion of our net income (loss) that was allocated to third-party investors and not retained by us.
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Underwriting Results by Segment
Property Segment
Below is a summary of the underwriting results and ratios for our Property segment:
Six months ended June 30, 2026 2025 Change
(in thousands, except percentages)
Gross premiums written $ 3,259,105 $ 3,862,768 $ (603,663)
Net premiums written $ 2,458,617 $ 3,016,551 $ (557,934)
Net premiums earned $ 1,782,349 $ 2,115,960 $ (333,611)
Net claims and claim expenses incurred 77,029 1,615,327 (1,538,298)
Acquisition expenses 332,467 341,845 (9,378)
Operational expenses 136,315 135,835 480
Underwriting income (loss) $ 1,236,538 $ 22,953 $ 1,213,585
Net claims and claim expenses incurred – current accident year $ 495,242 $ 2,068,961 $ (1,573,719)
Net claims and claim expenses incurred – prior accident years (418,213) (453,634) 35,421
Net claims and claim expenses incurred – total $ 77,029 $ 1,615,327 $ (1,538,298)
Net claims and claim expense ratio – current accident year 27.8 % 97.8 % (70.0) pts
Net claims and claim expense ratio – prior accident years (23.5) % (21.5) % (2.0) pts
Net claims and claim expense ratio – calendar year 4.3 % 76.3 % (72.0) pts
Underwriting expense ratio 26.3 % 22.6 % 3.7 pts
Combined ratio 30.6 % 98.9 % (68.3) pts
Property Gross Premiums Written
•Gross premiums written in the catastrophe class for the six months ended June 30, 2026 were $2.4 billion, representing a decrease of $602.3 million, or 19.9%, driven by:
–a decrease in gross reinstatement premiums of $371.7 million, primarily related to the lower level of catastrophe losses in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, which included the California Wildfires;
–otherwise, not including reinstatement premiums, gross premiums written in the catastrophe class decreased by $230.6 million, or 8.6%, reflecting rate reductions across the portfolio, which were offset in part by other opportunities for growth.
•Gross premiums written in the other property class for the six months ended June 30, 2026 were $832.1 million, consistent with the six months ended June 30, 2025.
Property Ceded Premiums Written
Six months ended June 30, 2026 2025 Change
(in thousands)
Ceded premiums written $ 800,488 $ 846,217 $ (45,729)
•Ceded premiums written decreased by $45.7 million, or 5.4%, driven by:
–the non-deployment of Upsilon in 2026.
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Property Net Premiums Earned
•Net premiums earned decreased by $333.6 million, or 15.8%, principally driven by:
–the decrease in net reinstatement premiums, primarily in the catastrophe class.
Property Underwriting Results
•Net claims and claim expense ratio improved by 72.0 percentage points, and included:
–a 70.0 percentage point improvement in the current accident year net claims and claim expense ratio, primarily due to:
◦lower catastrophe losses in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, which included 69.1 percentage points from the California Wildfires; and
–net favorable development of prior accident years of $418.2 million, or 23.5%, driven by:
◦net favorable development of $195.4 million in the catastrophe class, primarily from the large loss events in 2021 through 2025 and small events across accident years; and
◦net favorable development of $222.8 million in the other property class, primarily due to reported losses coming in lower than expected from large loss events in 2024 and attritional loss experience.
•Underwriting expense ratio increased by 3.7 percentage points, driven by:
–a 2.5 percentage point increase in the acquisition expense ratio, as the six months ended June 30, 2025 reflected higher catastrophe losses than the six months ended June 30, 2026. The comparative period acquisition expense ratio included:
◦a 2.3 percentage point impact from the net reinstatement premiums, primarily related to the California Wildfires; and
◦a 1.0 percentage point impact reflecting an adjustment to profit commission in DaVinci related to the California Wildfires. While this adjustment impacted the acquisition expense ratio, it was principally offset in noncontrolling interests and therefore did not have a net impact on earnings in the comparative period.
–a 1.2 percentage point increase in the operating expense ratio, driven by the lower net reinstatement premiums as noted above, and partially offset by a benefit from the Bermuda tax credits, both in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
•Combined ratio improved by 68.3 percentage points from the six months ended June 30, 2025, which included a 67.6 percentage point impact from the California Wildfires.
See “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional information related to the prior year development of net claims and claim expenses.
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Casualty and Specialty Segment
Below is a summary of the underwriting results and ratios for our Casualty and Specialty segment:
Six months ended June 30, 2026 2025 Change
(in thousands, except percentages)
Gross premiums written $ 3,214,192 $ 3,713,915 $ (499,723)
Net premiums written $ 2,496,639 $ 3,197,248 $ (700,609)
Net premiums earned $ 2,600,786 $ 3,016,975 $ (416,189)
Net claims and claim expenses incurred 1,849,320 2,170,554 (321,234)
Acquisition expenses 752,662 948,195 (195,533)
Operational expenses 47,467 90,088 (42,621)
Underwriting income (loss) $ (48,663) $ (191,862) $ 143,199
Net claims and claim expenses incurred – current accident year $ 1,792,547 $ 2,182,504 $ (389,957)
Net claims and claim expenses incurred – prior accident years 56,773 (11,950) 68,723
Net claims and claim expenses incurred – total $ 1,849,320 $ 2,170,554 $ (321,234)
Net claims and claim expense ratio – current accident year 68.9 % 72.3 % (3.4) pts
Net claims and claim expense ratio – prior accident years 2.2 % (0.4) % 2.6 pts
Net claims and claim expense ratio – calendar year 71.1 % 71.9 % (0.8) pts
Underwriting expense ratio 30.8 % 34.5 % (3.7) pts
Combined ratio 101.9 % 106.4 % (4.5) pts
Casualty and Specialty Gross Premiums Written
•Gross premiums written decreased by $499.7 million, or 13.5%, principally due to:
–exposure reductions across the general casualty, professional liability and other specialty classes;
–changes in premium estimates on business underwritten in prior years in the other specialty class; and
–a decrease in the credit class driven by opportunistic deals written during the six months ended June 30, 2025 that were not up for renewal in the six months ended June 30, 2026.
Casualty and Specialty Ceded Premiums Written
Six months ended June 30, 2026 2025 Change
(in thousands)
Ceded premiums written $ 717,553 $ 516,667 $ 200,886
•Ceded premiums written increased by $200.9 million, or 38.9%, driven by:
–an increase in the amount of quota share retrocessional coverage purchased to support our gross-to-net strategy across the portfolio, most notably within the casualty classes.
Casualty and Specialty Net Premiums Written
•Net premiums written decreased by $700.6 million, or 21.9%, primarily driven by:
–the decrease in gross premiums written, in addition to the increase in retrocessional purchases across the portfolio, most notably in the casualty classes.
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Casualty and Specialty Underwriting Results
•Net claims and claim expense ratio improved by 0.8 percentage points, and included:
–a 3.4 percentage point improvement in the current accident year net claims and claim expense ratio, principally due to a lower impact of large loss events within the other specialty class; partially offset by
–net adverse development of prior accident years of $56.8 million, or 2.2%, resulting in an increase of 2.6 percentage points in the prior accident years net claims and claim expense ratio. The net adverse development in the six months ended June 30, 2026 reflects:
◦$54.0 million, or 2.1 percentage points, from a shift of previously reported loss estimates for the Baltimore Bridge Collapse to Casualty and Specialty from the other property class;
◦$11.1 million, or 0.4 percentage points, of adverse impact from purchase accounting adjustments; and
◦net favorable development principally driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses from the other specialty and credit classes, offset by adverse development related to actuarial assumption changes principally impacting the general liability line of business.
•Underwriting expense ratio improved by 3.7 percentage points, driven by:
–a 2.4 percentage point improvement in the acquisition expense ratio, principally due to changes in variable commissions and a decrease in purchase accounting adjustments; and
–a 1.3 percentage point improvement in the operating expense ratio, primarily due to the Bermuda tax credits and an increase in override management fees.
•Combined ratio improved by 4.5 percentage points, due to:
–a lower level of large loss events in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, which included a 5.0 percentage point impact from the 2025 Large Loss Events; and
–the improvements to the underwriting expense ratio; partially offset by
–adverse development from prior years, which included adverse development related to the Baltimore Bridge Collapse of 1.7 percentage points, after considering the impact of reinstatement premiums.
See “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional information related to the development of prior accident years net claims and claim expenses.
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Fee Income
The table below shows the total fee income we earned from third-party capital management activities, including various joint ventures and managed funds, and certain structured reinsurance products.
Six months ended June 30, 2026 2025 Change
(in thousands)
Management Fee Income
Joint ventures (1) $ 69,759 $ 72,351 $ (2,592)
Managed funds (2) 11,370 14,848 (3,478)
Structured reinsurance products and other (3) 14,936 15,269 (333)
Total management fee income 96,065 102,468 (6,403)
Performance Fee Income (Loss)
Joint ventures (1) 57,618 9,968 47,650
Managed funds (2) 2,451 10,222 (7,771)
Structured reinsurance products and other (3) 21,019 2,756 18,263
Total performance fee income (loss) 81,088 22,946 58,142
Total fee income $ 177,153 $ 125,414 $ 51,739
(1)Joint ventures include DaVinci, Top Layer, Vermeer, and Fontana.
(2)Managed funds include Upsilon Fund, Medici and Medici UCITS, as well as certain third-party capital vehicles we manage through AlphaCat Managers.
(3)Structured reinsurance products and other includes certain reinsurance agreements and other vehicles through which we transfer risk to third-party capital.
•Total fee income increased by $51.7 million, due to:
–an increase in performance fees of $58.1 million as a result of:
◦improved current year underwriting results in DaVinci and our structured reinsurance products, principally due to the lower impact of large loss events in the six months ended June 30, 2026 compared to the six months ended June 30, 2025;
◦the recognition of deferred performance fees related to a return of capital in DaVinci; and
◦higher net favorable development of prior accident years in DaVinci.
–a decrease in management fee income of $6.4 million, primarily driven by:
◦lower management fees in Fontana as a result of lower net premiums earned; and
◦a decrease in management fees in Upsilon and AlphaCat due to the continued release of collateral associated with prior years’ contracts.
•Total fee income of $177.2 million included $131.6 million of fee income recorded in net income (loss) attributable to redeemable noncontrolling interests, which is not included in our underwriting income (loss).
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The fee income we earned through third-party capital management activities and from certain structured reinsurance products is recorded in multiple line items in our financial statements. The table below summarizes the impact of fee income on the financial statements.
Six months ended June 30, 2026 2025 Change
(in thousands)
Fee income recorded within net income (loss) attributable to redeemable noncontrolling interests $ 131,561 $ 73,523 $ 58,038
Fee income recorded within underwriting income (loss) (1) 45,592 51,891 (6,299)
Total fee income $ 177,153 $ 125,414 $ 51,739
(1)Reflects total fee income earned through third-party capital management activities and certain structured reinsurance products which is recorded through underwriting income (loss) as a decrease (increase) to operational expenses or acquisition expenses. During the six months ended June 30, 2026, $22.0 million of management fee income was recorded as a reduction to operational expenses (June 30, 2025 - $24.9 million) and $23.6 million of performance fee income was recorded as a reduction to acquisition expenses (June 30, 2025 - $27.0 million).
Investment Results
Net Investment Income
Six months ended June 30, 2026 2025 Change
(in thousands)
Fixed maturity investments trading $ 591,716 $ 566,896 $ 24,820
Short term investments 67,263 89,444 (22,181)
Equity investments
Fixed income exchange traded funds 47,811 7,712 40,099
Common stock (1) 1,353 1,341 12
Other investments
Catastrophe bonds 80,027 102,702 (22,675)
Fund and direct private equity investments (2) 58,544 40,415 18,129
Cash and cash equivalents 20,583 23,443 (2,860)
867,297 831,953 35,344
Investment expenses (14,306) (13,492) (814)
Net investment income $ 852,991 $ 818,461 $ 34,530
(1)In the fourth quarter of 2025, we revised the description of our “other equity investments” to “common stock.”
(2)In the fourth quarter of 2025, we revised the description of our “other investments - other” to “other investments - fund and direct private equity investments.”
•Net investment income increased by $34.5 million, primarily due to:
–higher average invested assets and changes to portfolio allocation, resulting in increased income from fixed maturity investments trading, fixed income exchange traded funds and fund and direct private equity investments; partially offset by
–lower income from short term investments, due to lower average invested assets and market yields; and
–lower income from catastrophe bonds as a result of lower average invested assets.
•Net investment income of $853.0 million included $234.5 million of income attributable to redeemable noncontrolling interests, which was allocated to third-party investors and not retained by us.
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Equity in Earnings (Losses) of Other Ventures
Six months ended June 30, 2026 2025 Change
(in thousands)
Equity in earnings (losses) of other ventures $ 38,314 $ 38,161 $ 153
•Equity in earnings of other ventures was consistent with the six months ended June 30, 2025.
Net Realized and Unrealized Gains (Losses) on Investments
Six months ended June 30, 2026 2025 Change
(in thousands)
Fixed maturity-related investments (1) (2) $ (383,289) $ 462,387 $ (845,676)
Equity-related investments (1) (3) 69,866 61,529 8,337
Commodity-related investments (1) (4) (13,821) 150,844 (164,665)
Other investments
Catastrophe bonds (12,954) (54,429) 41,475
Fund and direct private equity investments (5) 39,913 62,329 (22,416)
Net realized and unrealized gains (losses) on investments $ (300,285) $ 682,660 $ (982,945)
(1)Refer to “Note 13. Derivative Instruments” in our “Notes to Consolidated Financial Statements” for additional information on investment-related derivatives.
(2)Includes fixed maturity investments and investment-related derivatives, which includes interest rate futures, credit default swaps and interest rate swaps.
(3)Includes equity investments and investment-related derivatives, which includes equity futures and warrants.
(4)Includes commodity-related derivatives, which includes commodity futures and commodity options.
(5)In the fourth quarter of 2025, we revised the description of our “other investments - other” to “other investments - fund and direct private equity investments.”
•Net realized and unrealized losses on investments of $300.3 million were driven by:
–$383.3 million of net realized and unrealized losses on fixed maturity-related investments trading, including interest rate futures, primarily due to increases in market yields in the six months ended June 30, 2026; partially offset by
–$69.9 million of net realized and unrealized gains on equity-related investments, primarily from equity futures being favorably impacted by equity market movements, partially offset by net realized and unrealized losses on fixed income exchange traded funds.
•Net realized and unrealized losses on investments increased by $982.9 million, mainly driven by:
–an increase in net realized and unrealized losses on fixed maturity-related investments of $845.7 million, primarily due to:
◦increases in market yields in the six months ended June 30, 2026, compared to decreases in market yields in the six months ended June 30, 2025; and
–an increase in net realized and unrealized losses on commodity-related investments of $164.7 million, principally due to:
◦decreases in gold futures prices in the six months ended June 30, 2026, compared to increases in gold futures prices in the six months ended June 30, 2025.
Refer to “Note 3. Investments” and “Note 13. Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information regarding our investments and derivatives we have entered into.
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Net Foreign Exchange Gains (Losses)
Six months ended June 30, 2026 2025 Change
(in thousands)
Net foreign exchange gains (losses) $ (16,364) $ 1,332 $ (17,696)
•Net foreign exchange losses increased by $17.7 million, driven by:
–losses attributable to third-party investors in Medici, which are allocated through net income (loss) attributable to redeemable noncontrolling interest, in the six months ended June 30, 2026, compared to gains attributable to third-party investors in Medici in the six months ended June 30, 2025; partially offset by
–a decrease in losses on certain foreign exchange exposures related to our underwriting activities.
Refer to “Note 13. Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information related to foreign currency forward and option contracts we have entered into.
Corporate Expenses
Six months ended June 30, 2026 2025 Change
(in thousands)
Corporate expenses $ 38,141 $ 46,591 $ (8,450)
•Corporate expenses decreased by $8.5 million, primarily driven by:
–the Bermuda tax credits; partially offset by
–increased compensation expenses.
Income Tax Benefit (Expense)
Six months ended June 30, 2026 2025 Change
(in thousands)
Income tax benefit (expense) $ (172,384) $ (131,344) $ (41,040)
•Income tax expense of $172.4 million was driven by:
–strong operating profits, partially offset by mark-to-market losses in the six months ended June 30, 2026.
•Income tax expense increased by $41.0 million, primarily driven by:
–increased operating income across our operating jurisdictions compared to the six months ended June 30, 2025, which was impacted by the California Wildfires; partially offset by
–mark-to-market losses in the six months ended June 30, 2026, compared to mark-to-market gains in the six months ended June 30, 2025.
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Net Income (Loss) Attributable to Redeemable Noncontrolling Interests
Six months ended June 30, 2026 2025 Change
(in thousands)
Redeemable noncontrolling interest - DaVinci $ 362,017 $ 106,012 $ 256,005
Redeemable noncontrolling interest - Medici 46,120 54,156 (8,036)
Redeemable noncontrolling interest - Vermeer 116,482 (49,655) 166,137
Redeemable noncontrolling interest - Fontana 13,092 22,574 (9,482)
Net income (loss) attributable to redeemable noncontrolling interests $ 537,711 $ 133,087 $ 404,624
•Net income attributable to redeemable noncontrolling interests increased by $404.6 million, primarily driven by:
–an increase in underwriting income in DaVinci, Vermeer and Fontana, principally due to the lower impact of large loss events in the six months ended June 30, 2026, compared to the six months ended June 30, 2025; partially offset by
–an increase in net realized and unrealized losses on investments in the investment portfolios of our joint ventures and managed funds in the six months ended June 30, 2026; and
–an increase in performance fee income recorded in noncontrolling interests as a result of higher underwriting income in the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
•Net income attributable to redeemable noncontrolling interests of $537.7 million included $234.5 million of net investment income, partially offset by $97.1 million of net realized and unrealized losses on investments, as well as $131.6 million in management and performance fee income.
Refer to “Note 8. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests.
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FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Financial Condition
As a Bermuda-domiciled holding company, RenaissanceRe has limited operations of its own. Its assets consist primarily of investments in subsidiaries and cash and securities in amounts which fluctuate over time. We therefore rely on dividends and distributions (and other statutorily permissible payments) from our subsidiaries, investment income and fee income to meet our liquidity requirements, which primarily include making principal and interest payments on our debt and dividend payments to our preference and common shareholders.
The payment of dividends by our subsidiaries is, under certain circumstances, limited by the applicable laws and regulations in the various jurisdictions in which our subsidiaries operate. In addition, insurance laws require our insurance subsidiaries to maintain certain measures of solvency and liquidity. We believe that each of our insurance subsidiaries and branches exceeded the minimum solvency, capital and surplus requirements in their applicable jurisdictions at June 30, 2026. Certain of our subsidiaries and branches are required to file FCRs with their regulators, which provide details on solvency and financial performance. Where required, these FCRs will be posted on our website. The regulations governing our and our principal operating subsidiaries’ ability to pay dividends and to maintain certain measures of solvency and liquidity, and requirements to file FCRs are discussed in detail in “Part I, Item 1. Business, Regulation” and “Note 18. Statutory Requirements” in our “Notes to the Consolidated Financial Statements” in our Form 10-K for the year ended December 31, 2025.
Liquidity and Cash Flows
Holding Company Liquidity
RenaissanceRe’s principal uses of liquidity are: (1) common share related transactions including dividend payments to our common shareholders and common share repurchases, (2) preference share related transactions including dividend payments to our preference shareholders and preference share redemptions, (3) interest and principal payments on debt, (4) capital investments in our subsidiaries, (5) acquisition of, or investments in, new or existing companies or books of business of other companies, such as the Validus Acquisition, and (6) certain corporate and operational expenses.
We attempt to structure our organization in a way that facilitates efficient capital movements between RenaissanceRe and our operating subsidiaries and to ensure that adequate liquidity is available when required, giving consideration to applicable laws and regulations, and the domiciliary location of sources of liquidity and related obligations. For example, our internal investment structures and cash pooling arrangements among RenaissanceRe and certain of our subsidiaries help to efficiently facilitate capital and liquidity movements.
In the aggregate, our principal operating subsidiaries have historically produced sufficient cash flows to meet their expected claims payments and operational expenses and to provide dividend payments to us. In addition, our subsidiaries maintain a concentration of investments in high quality liquid securities, which management believes will provide additional liquidity for extraordinary claims payments should the need arise. In 2024 and 2025, we received significant distributions of capital from many of our principal operating subsidiaries, including Renaissance Reinsurance and RREAG, from earnings in the ordinary course and in connection with the integration of Validus and streamlining of our corporate structure.
However, in some circumstances, RenaissanceRe may determine it is necessary or advisable to contribute capital to our subsidiaries or may be contractually required to contribute capital to our subsidiaries, joint ventures or managed funds. For example, in 2024, RenaissanceRe contributed capital to RenaissanceRe Specialty U.S. to support growth in premiums. In addition, from time to time we invest in new managed joint ventures or managed funds, increase our investments in certain of our managed joint ventures or managed funds and contribute cash or assets to these entities, such as in connection with the launch of Medici UCITS in 2025. Examples of our contractual requirements to make capital contributions to our subsidiaries or joint ventures or managed funds include our net worth maintenance agreements with certain operating subsidiaries, and Renaissance Reinsurance’s obligation to make a mandatory capital contribution of up to $50.0 million in the event that a loss reduces Top Layer’s capital below a specified level.
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Sources of Liquidity
Historically, cash receipts from operations, consisting primarily of premiums, investment income and fee income, have provided sufficient funds to pay the losses and operational expenses incurred by our subsidiaries and to fund dividends and distributions to RenaissanceRe. Other potential sources of liquidity include borrowings under our credit facilities and issuances of securities.
The premiums received by our operating subsidiaries are generally received months or even years before losses are paid under the policies related to such premiums. Premiums and acquisition expenses generally are received within the first two years of inception of a contract, while operational expenses are generally paid within a year of being incurred. It generally takes much longer for net claims and claim expenses incurred to be reported and ultimately settled, requiring the establishment of reserves for claims and claim expenses and reinsurance recoverable. Therefore, the amount of net claims paid in any one year is not necessarily related to the amount of net claims and claim expenses incurred in that year, as reported in the consolidated statements of operations.
We expect that our liquidity needs for the next 12 months will be met by our cash receipts from operations. However, as a result of a combination of market conditions, turnover of our investment portfolios and changes in investment yields, and the nature of our business where a large portion of the coverages we provide can produce losses of high severity and low frequency, future cash flows from operating activities cannot be accurately predicted and may fluctuate significantly between individual quarters and years. In addition, due to the magnitude and complexity of certain large loss events, meaningful uncertainty remains regarding losses from these events and our actual ultimate net losses from these events may vary materially from preliminary estimates, which would impact our cash flows from operations.
Our “shelf” registration statement on Form S-3 under the Securities Act allows for the public offering of various types of securities, including common shares, preference shares and debt securities, which provides a source of liquidity. Because we are a “well-known seasoned issuer” as defined by the rules promulgated under the Securities Act, we are also eligible to file additional automatically effective registration statements on Form S-3 in the future for the potential offering and sale of additional debt and equity securities. From time to time, we raise capital through public offerings pursuant to our registration statements. For example, in February 2025, we completed an offering of $500.0 million of 5.800% Senior Notes due April 2035 for net proceeds of $493.5 million.
Credit Facilities, Trusts and Other Collateral Arrangements
We also maintain various other arrangements that allow us to access liquidity and satisfy collateral requirements, including revolving credit facilities, letter of credit facilities, and regulatory trusts, as well as other types of trust and collateral arrangements. Regulatory and other requirements to post collateral to support our reinsurance obligations could impact our liquidity. For example, many jurisdictions in the U.S. do not permit insurance companies to take credit for reinsurance obtained from unlicensed or non-admitted insurers on their statutory financial statements unless security is posted, so our contracts generally require us to post a letter of credit or provide other security (such as through a multi-beneficiary reinsurance trust). However, certain of our subsidiaries qualify as certified reinsurers or reciprocal reinsurers in one or more U.S. states, which has, and may continue to, reduce the amount of collateral that we are required to post. In addition, if we were to fail to comply with certain covenants in our debt agreements, we may have to pledge additional collateral.
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Letter of Credit and Revolving Credit Facilities
We and certain of our subsidiaries, joint ventures, and managed funds maintain secured and unsecured revolving credit facilities and letter of credit facilities that provide liquidity and allow us to satisfy certain collateral requirements. The outstanding amounts issued or drawn under each of our significant credit facilities are set forth below:
At June 30, 2026 Issued or Drawn
(in thousands)
Revolving Credit Facility (1) $ —
Bilateral Letter of Credit Facilities
Secured 176,605
Unsecured 285,000
$ 461,605
(1)At June 30, 2026, no amounts were issued or drawn under this facility.
Refer to “Note 7. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” for additional information related to our debt and credit facilities.
Funds at Lloyd’s
As a member of Lloyd’s, the underwriting capacity, or stamp capacity, of Syndicate 1458 is required to be supported by providing a deposit, the FAL, in the form of cash, securities or letters of credit. At June 30, 2026, the FAL required to support the underwriting activities at Lloyd’s through Syndicate 1458 was £635.8 million (December 31, 2025 - £577.8 million). Actual FAL posted for Syndicate 1458 at June 30, 2026 by RenaissanceRe Corporate Capital (UK) Limited was $870.7 million (December 31, 2025 - $912.0 million), supported by a deposit of cash and fixed maturity securities.
Multi-Beneficiary Reinsurance Trusts, Multi-Beneficiary Reduced Collateral Reinsurance Trusts
Renaissance Reinsurance, DaVinci Reinsurance and RREAG use multi-beneficiary reinsurance trusts and/or multi-beneficiary reduced collateral reinsurance trusts to collateralize reinsurance liabilities. As of June 30, 2026, all of these trusts were funded in accordance with the relevant regulatory thresholds. However, assets held in these trusts have in the past, and may in the future, exceed the amount required under U.S. state regulations.
Refer to “Note 18. Statutory Requirements” in our “Notes to the Consolidated Financial Statements” in our Form 10-K for the year ended December 31, 2025 for additional information on our multi-beneficiary reinsurance trusts and multi-beneficiary reduced collateral reinsurance trusts.
The following table summarizes the assets held under trust and minimum amount required pursuant to U.S. state regulations in the multi-beneficiary reinsurance trusts.
At June 30, 2026 At December 31, 2025
Assets Held Under Trust Minimum Amount Required Assets Held Under Trust Minimum Amount Required
(in thousands)
RREAG $ 1,327,233 $ 1,254,380 $ 1,395,468 $ 1,184,741
Renaissance Reinsurance $ 472,603 $ 338,288 $ 581,595 $ 413,673
DaVinci Reinsurance $ 49,173 $ 30,763 $ 60,634 $ 32,421
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The following table summarizes the assets held under trust and minimum amount required pursuant to U.S. state regulations in the reduced collateral reinsurance trusts.
At June 30, 2026 At December 31, 2025
Assets Held Under Trust Minimum Amount Required Assets Held Under Trust Minimum Amount Required
(in thousands)
Renaissance Reinsurance $ 88,483 $ 53,550 $ 88,334 $ 62,796
DaVinci Reinsurance $ 69,926 $ 42,379 $ 59,617 $ 50,850
RREAG $ 61,870 $ 48,928 $ 67,692 $ 53,647
Contractual Obligations
In assessing our liquidity requirements and cash needs, we also consider contractual obligations to which we are a party. These contractual obligations are summarized in our Form 10-K for the year ended December 31, 2025. As of June 30, 2026, there were no material changes in our contractual obligations as disclosed in the table of contractual obligations and related footnotes included in our Form 10-K for the year ended December 31, 2025, except as otherwise disclosed. Refer to “Note 7. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” for additional information related to our debt obligations and credit facilities.
Cash Flows
Six months ended June 30, 2026 2025
(in thousands)
Net cash provided by (used in) operating activities $ 1,539,924 $ 1,627,334
Net cash provided by (used in) investing activities (211,229) (1,250,554)
Net cash provided by (used in) financing activities (1,742,802) (627,127)
Effect of exchange rate changes on foreign currency cash (14,914) 2,424
Net increase (decrease) in cash and cash equivalents (429,021) (247,923)
Cash and cash equivalents, beginning of period 1,731,181 1,676,604
Cash and cash equivalents, end of period $ 1,302,160 $ 1,428,681
2026
During the six months ended June 30, 2026, our cash and cash equivalents decreased by $429.0 million, to $1.3 billion at June 30, 2026, compared to $1.7 billion at December 31, 2025.
Cash flows provided by operating activities
Cash flows provided by operating activities during the six months ended June 30, 2026 were $1.5 billion and were primarily driven by certain adjustments to reconcile our net income of $1.5 billion to net cash provided by operating activities, including:
•an increase in unearned premiums of $1.1 billion due to gross premiums written across both our Property and Casualty and Specialty segments; and
•net realized and unrealized losses on investments of $300.3 million, primarily driven by:
–net losses on fixed maturity-related investments resulting from increases in market yields; and
–net gains on equity-related investments, primarily from equity futures being favorably impacted by equity market movements, partly offset by net losses on fixed income exchange traded funds; and
•an increase in reinsurance balances payable of $515.5 million, largely due to the timing of payments and increased retrocessional coverage purchased; partially offset by
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•an increase in premiums receivable of $1.0 billion due to the timing of receipts and additional gross premiums written; and
•an increase in prepaid reinsurance premiums of $574.0 million due to the renewal of our ceded book and increased retrocessional purchases.
Cash flows used in investing activities
During the six months ended June 30, 2026, our cash flows used in investing activities were $211.2 million, principally reflecting:
•net purchases of fixed maturity investments trading of $481.3 million;
•net purchases of other investments of $421.3 million; and
•net purchases of equity investments of $174.9 million, which were predominantly in equity and fixed income exchange traded funds; partially offset by
•net sales of short term investments of $851.6 million.
Cash flows used in financing activities
Our cash flows used in financing activities during the six months ended June 30, 2026 were $1.7 billion, and were principally the result of:
•net outflows of $961.0 million related to net third-party redeemable noncontrolling interest share and capital transactions in our joint ventures and managed funds; and
•common share repurchases of $702.5 million.
2025
During the six months ended June 30, 2025, our cash and cash equivalents decreased by $247.9 million, to $1.4 billion at June 30, 2025, compared to $1.7 billion at December 31, 2024.
Cash flows provided by operating activities
Cash flows provided by operating activities during the six months ended June 30, 2025 were $1.6 billion, compared to $1.9 billion during the six months ended June 30, 2024. Cash flows provided by operating activities during the six months ended June 30, 2025 were primarily the result of certain adjustments to reconcile our net income of $1.1 billion to net cash provided by operating activities, including:
•an increase in unearned premiums of $1.6 billion due to gross premiums written across both our Property and Casualty and Specialty segments;
•an increase in reserve for claims and claim expenses of $1.6 billion, principally reflected by an increase in our Property segment due to the 2025 Large Loss Events, as well as an increase in our Casualty and Specialty segment, largely driven by additional premiums earned during the six months ended June 30, 2025;
•an increase in premiums receivable of $1.8 billion due to the timing of receipts and an increase in our gross premiums written;
•net realized and unrealized gains on investments of $365.7 million, primarily driven by higher net realized and unrealized gains on fixed maturity investments resulting from declining market yields in 2025; and
•an increase in prepaid reinsurance premiums of $527.3 million due to the renewal of our ceded book, which drove growth in our prepaid reinsurance premiums.
Cash flows used in investing activities
During the six months ended June 30, 2025, our cash flows used in investing activities were $1.3 billion, principally reflecting net purchases of equity investments of $766.0 million, which were predominantly in fixed income exchange traded funds, and net purchases of short term investments of $1.1 billion. The net purchases of fixed income exchange traded funds and short term investments were partially funded by net
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sales of fixed maturity investments trading of $838.2 million, with the remaining funded by cash flows provided by operating activities.
Cash flows used in financing activities
Our cash flows used in financing activities in the six months ended June 30, 2025 were $627.1 million, and were principally the result of:
•net outflows of $192.8 million primarily related to net third-party redeemable noncontrolling interest share and capital transactions in Medici, Fontana and DaVinci;
•common share repurchases of $731.4 million;
•issuance of debt of $790.0 million related to the issuance of 5.950% Senior Notes due 2035 of DaVinci and 5.800% Senior Notes due 2035 of RenaissanceRe;
•repayment of debt of $450.0 million, consisting of $300.0 million of 3.700% Senior Notes due 2025, and $150.0 million of DaVinci Senior Notes; and
•drawdown of the Medici Revolving Credit Facility of $75.0 million, partially offset by a repayment of $40.0 million.
Capital Resources
We monitor our capital adequacy on a regular basis and seek to adjust our capital according to the needs of our business. In particular, we require capital sufficient to meet or exceed the capital adequacy ratios established by rating agencies for maintenance of appropriate financial strength ratings, the capital adequacy tests performed by regulatory authorities and the capital requirements under our credit facilities. From time to time, rating agencies may make changes in their capital models and rating methodologies, which could increase the amount of capital required to support our ratings. We may seek to raise additional capital or return capital to our shareholders through common share repurchases and cash dividends (or a combination of such methods). In the normal course of our operations, we may from time to time evaluate additional share or debt issuances given prevailing market conditions and capital management strategies, including for our operating subsidiaries, joint ventures and managed funds. In addition, as noted above, we enter into agreements with financial institutions to obtain letter of credit facilities for the benefit of our operating subsidiaries and certain of our joint ventures and managed funds in their reinsurance and insurance business.
Our total shareholders’ equity attributable to RenaissanceRe and total debt was as follows:
At June 30, 2026 At December 31, 2025 Change
(in thousands)
Common shareholders’ equity $ 11,070,209 $ 10,858,657 $ 211,552
Preference shares 750,000 750,000 —
Total shareholders’ equity attributable to RenaissanceRe $ 11,820,209 $ 11,608,657 $ 211,552
7.003% Senior Notes due 2035 (Fontana) (1) $ 99,264 $ 99,224 $ 40
5.950% Senior Notes due 2035 (DaVinci) (2) 297,134 296,972 162
5.800% Senior Notes due 2035 494,105 493,770 335
5.750% Senior Notes due 2033 743,476 743,009 467
3.600% Senior Notes due 2029 397,422 396,966 456
3.450% Senior Notes due 2027 299,506 299,260 246
Total debt $ 2,330,907 $ 2,329,201 $ 1,706
(1)RenaissanceRe owns a noncontrolling economic interest in its joint venture Fontana. Because RenaissanceRe controls a majority of Fontana’s issued voting shares, the consolidated financial statements of Fontana are included in the consolidated financial statements of RenaissanceRe. RenaissanceRe has not provided any financial or other support to Fontana that it was not contractually required to provide. RenaissanceRe’s financial exposure to Fontana is limited to its investment in Fontana’s shares and counterparty credit risk arising from reinsurance transactions.
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(2)RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinci. Because RenaissanceRe controls a majority of DaVinci’s issued voting shares, the consolidated financial statements of DaVinci are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinci and RenaissanceRe’s financial exposure to DaVinci is limited to its investment in DaVinci’s shares and counterparty credit risk arising from reinsurance transactions.
Our total shareholders’ equity attributable to RenaissanceRe increased by $211.6 million during the six months ended June 30, 2026 principally as a result of:
•our comprehensive income attributable to RenaissanceRe of $956.0 million; partially offset by
•repurchase of common shares at an aggregate cost of $702.5 million; and
•dividends on our common and preference shares of $34.5 million and $17.7 million, respectively.
For additional information related to the terms of our debt and significant credit facilities, see “Note 7. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” in this Form 10-Q and “Note 9. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” in our Form 10-K for the year ended December 31, 2025. See “Note 10. Shareholders’ Equity” in our “Notes to the Consolidated Financial Statements” in this Form 10-Q and “Note 12. Shareholders’ Equity” in our “Notes to the Consolidated Financial Statements” in our Form 10-K for the year ended December 31, 2025 for additional information related to our common and preference shares.
Reserve for Claims and Claim Expenses
We believe the most significant accounting judgment made by management is our estimate of claims and claim expense reserves. Claims and claim expense reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts we sell. Our actual net claims and claim expenses paid will differ, perhaps materially, from the estimates reflected in our financial statements, which may adversely impact our financial condition, liquidity and capital resources.
Refer to “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” in this Form 10-Q and “Note 8. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” in our Form 10-K for the year ended December 31, 2025 for more information on the risks we insure and reinsure, the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, prior year development of the reserve for claims and claim expenses, analysis of our incurred and paid claims development and claims duration information for each of our Property and Casualty and Specialty segments. In addition, refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Estimates—Claims and Claim Expense Reserves” in our Form 10-K for the year ended December 31, 2025 for more information on the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, our actual results versus our initial estimates of our claims reserves, and sensitivity analysis for each of our Property and Casualty and Specialty segments.
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Investments
The table below shows our invested assets:
June 30, 2026 December 31, 2025 Change
(in thousands, except percentages)
Corporate $ 9,916,723 27.4 % $ 8,528,828 23.6 % $ 1,387,895
U.S. treasuries 9,308,212 25.9 % 10,641,503 29.7 % (1,333,291)
Residential mortgage-backed 2,690,648 7.4 % 2,606,882 7.2 % 83,766
Asset-backed 1,688,500 4.7 % 1,606,790 4.5 % 81,710
Non-U.S. government 683,983 1.9 % 691,912 1.9 % (7,929)
Agencies 560,030 1.5 % 486,817 1.3 % 73,213
Commercial mortgage-backed 337,334 0.9 % 321,591 0.9 % 15,743
Total fixed maturity investments trading, at fair value 25,185,430 69.7 % 24,884,323 69.1 % 301,107
Short term investments, at fair value 3,949,012 10.9 % 4,759,811 13.2 % (810,799)
Fixed income exchange traded funds 1,603,299 4.4 % 1,582,811 4.4 % 20,488
Equity exchange traded funds 102,273 0.3 % — — % 102,273
Common stock 140,580 0.4 % 150,179 0.4 % (9,599)
Total equity investments, at fair value 1,846,152 5.1 % 1,732,990 4.8 % 113,162
Fund investments 3,156,249 8.6 % 2,775,499 7.6 % 380,750
Catastrophe bonds 1,772,044 4.9 % 1,613,710 4.5 % 158,334
Direct private equity investments 154,876 0.4 % 185,005 0.5 % (30,129)
Total other investments, at fair value 5,083,169 13.9 % 4,574,214 12.6 % 508,955
Investments in other ventures, under equity method 149,337 0.4 % 121,871 0.3 % 27,466
Total investments $ 36,213,100 100.0 % $ 36,073,209 100.0 % $ 139,891
We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. Notwithstanding the foregoing, our investments are subject to market-wide risks and fluctuations, as well as to risks inherent in particular securities. Refer to “Note 3. Investments” and “Note 4. Fair Value Measurements” in our “Notes to the Consolidated Financial Statements” for additional information regarding our investments and the related fair value measurement.
As the reinsurance coverages we sell include substantial protection for damages resulting from natural and man-made catastrophes, as well as for potentially large casualty and specialty exposures, we expect, from time to time, to become liable for substantial claim payments on short notice. Accordingly, our investment portfolio as a whole is structured to seek to preserve capital and provide a high level of liquidity, which means that the large majority of our investments are highly rated fixed income securities, including U.S. treasuries, agencies, highly rated sovereign and supranational securities, high-grade corporate securities and mortgage-backed and asset-backed securities. We also have an allocation to publicly traded equities and exchange‑traded funds, which are reflected on our consolidated balance sheet as equity investments, and an allocation to other investments (including catastrophe bonds, fund investments and direct private equity investments).
Fixed Maturity Investments and Short Term Investments
At June 30, 2026, our fixed maturity investments and short term investment portfolio had a weighted average credit quality rating of AA (December 31, 2025 - AA) and a weighted average effective yield of 4.6% (December 31, 2025 - 4.2%). At June 30, 2026, our non-investment grade and not-rated fixed maturity investments totaled $1.0 billion or 3.9% of our fixed maturity investments (December 31, 2025 - $1.2 billion or 5.0%, respectively). In addition, within our other investments category we have funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities. At
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June 30, 2026, the funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities totaled $3.5 billion (December 31, 2025 - $3.2 billion).
At June 30, 2026, we had $3.9 billion of short term investments (December 31, 2025 - $4.8 billion). Short term investments are managed as part of our investment portfolio and have a maturity of one year or less when purchased. Short term investments are carried at fair value.
The duration of our fixed maturity investments and short term investments at June 30, 2026 was 3.4 years (December 31, 2025 - 2.8 years). From time to time, we may reevaluate the duration of our portfolio in light of the duration of our liabilities and market conditions.
The value of our fixed maturity investments will fluctuate with changes in the interest rate environment and when changes occur in economic conditions or the investment markets. Additionally, our differing asset classes expose us to other risks which could cause a reduction in the value of our investments.
Equity Investments
The following table summarizes the fair value of equity investments:
June 30, 2026 December 31, 2025 Change
(in thousands)
Fixed income exchange traded funds $ 1,603,299 $ 1,582,811 $ 20,488
Equity exchange traded funds 102,273 — 102,273
Common stock
Financials 139,961 147,996 (8,035)
Other 619 2,183 (1,564)
Total common stock 140,580 150,179 (9,599)
Total equity investments $ 1,846,152 $ 1,732,990 $ 113,162
Our equity investments include fixed income exchange traded funds, equity exchange traded funds and common stocks. Our fixed income exchange traded funds invest in a combination of treasuries, corporate bonds or asset-backed and mortgage-backed fixed maturity investments. The value of our fixed income exchange traded funds will fluctuate with changes in the interest rate environment, credit risk and when changes occur in economic conditions or the investment markets. Equity exchange traded funds are primarily focused on public equities.
Common stocks are managed pursuant to diversified public equity securities mandates with third-party investment managers and also includes more concentrated public equity positions that we invest in through our strategic investment portfolio. These investments are subject to a variety of risks including: company performance, the availability of strategic investment opportunities, and macro-economic, industry, and systemic risks of the equity markets overall. Consequently, the carrying value of our investment portfolio will vary over time as the value or size of our portfolio of investments in equity securities fluctuates. It is possible we will increase our equity allocation in the future, and it could, from time to time, have a material effect on our financial results.
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Other Investments
The table below shows our portfolio of other investments:
June 30, 2026 December 31, 2025 Change
(in thousands)
Fund investments
Private credit funds $ 1,531,757 $ 1,445,158 $ 86,599
Private equity funds 793,136 701,837 91,299
Multi-strategy funds (1) 593,071 473,990 119,081
Insurance-linked securities funds 162,192 154,514 7,678
Equity funds 76,093 — 76,093
Total fund investments 3,156,249 2,775,499 380,750
Catastrophe bonds 1,772,044 1,613,710 158,334
Direct private equity investments 154,876 185,005 (30,129)
Total other investments $ 5,083,169 $ 4,574,214 $ 508,955
(1)In the first quarter of 2026, the Company revised the classification of its “fund investments - hedge funds” to be included within “fund investments - multi-strategy funds.”
Refer to “Note 3. Investments” in our “Notes to the Consolidated Financial Statements” for additional information regarding our portfolio of other investments.
Ratings
Financial strength ratings are important to the competitive position of reinsurance and insurance companies. We have received high financial strength ratings from A.M. Best, S&P, Moody’s and Fitch. These ratings represent independent opinions of an insurer’s financial strength, operating performance and ability to meet policyholder obligations, and are not an evaluation directed toward the protection of investors or a recommendation to buy, sell or hold any of our securities. Certain of our entities and the senior notes and preference shares issued by them also have credit ratings. Rating organizations continually review the financial positions of our principal operating subsidiaries and joint ventures and ratings may be revised or revoked by the agencies which issue them. Additionally, rating organizations may change their capital models and rating methodologies, which could have a material impact on our ratings and business.
In addition, A.M. Best assesses and scores companies’ ERM practices, which is an opinion on the many critical dimensions of risk that determine overall creditworthiness. RenaissanceRe has been assigned an ERM score of “Very Strong,” which is the highest ERM score assigned.
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The financial strength ratings of our principal operating subsidiaries and joint ventures and the ERM score of RenaissanceRe as of July 20, 2026 are presented below.
A.M. Best (1) S&P (2) Moody’s (3) Fitch (4)
Renaissance Reinsurance Ltd. A+ A+ A1 A+
DaVinci Reinsurance Ltd. A A+ A2 —
Fontana Holdings L.P. A — — —
Renaissance Reinsurance of Europe DAC A+ A+ — —
Renaissance Reinsurance U.S. Inc. A+ A+ — —
RenaissanceRe Europe AG A+ A+ — —
RenaissanceRe Specialty U.S. Ltd. A+ A+ — —
Top Layer Reinsurance Ltd. A+ AA — —
Vermeer Reinsurance Ltd. A — — —
RenaissanceRe Syndicate 1458 — — — —
Lloyd’s Overall Market Rating A+ AA- — AA-
RenaissanceRe ERM Score Very Strong — — —
(1)The A.M. Best ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. RenaissanceRe has been assigned a “Very Strong” ERM score by A.M. Best.
(2)The S&P ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating.
(3)The Moody’s ratings represent the insurer’s financial strength rating.
(4)The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating.
As of July 20, 2026, there were no material changes to our ratings as disclosed in our Form 10-K for the year ended December 31, 2025.
SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION
RenaissanceRe Finance, a 100% owned subsidiary of RenaissanceRe, issued certain 3.450% Senior Notes due 2027. The notes are fully and unconditionally guaranteed by RenaissanceRe. The guarantees are senior unsecured obligations of RenaissanceRe ranking equally in right of payment with all other existing and future unsecured and unsubordinated indebtedness of RenaissanceRe, which may be outstanding from time to time. The notes have various covenants, including limitations on mergers and consolidations, and restrictions as to the disposition of, and the placing of liens on, stock of designated subsidiaries. For additional information related to the terms of our debt securities, refer to “Note 9. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” in our Form 10-K for the year ended December 31, 2025 and “Note 7. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” in this Form 10-Q.
The following tables present supplemental summarized financial information for RenaissanceRe and RenaissanceRe Finance, collectively the “Obligor Group.” Intercompany transactions among the members of the Obligor Group have been eliminated. The financial information of non-obligor subsidiaries has been excluded from the summarized financial information. In addition, assets as detailed in the table below exclude investments in subsidiaries for the Obligor Group. Significant intercompany transactions and receivable/payable balances between the Obligor Group and non-obligor subsidiaries are presented separately in the summarized financial information:
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Summarized Balance Sheets
June 30, 2026 December 31, 2025
(in thousands)
Assets
Receivables due from non-obligor subsidiaries $ 1,919,822 $ 1,895,861
Other current assets 147,081 353,962
Total current assets $ 2,066,903 $ 2,249,823
Goodwill and other intangible assets $ 97,332 $ 97,332
Loan receivable from non-obligor subsidiaries 936,139 743,433
Other noncurrent assets 56,888 29,223
Total noncurrent assets $ 1,090,359 $ 869,988
Liabilities
Payables due to non-obligor subsidiaries $ 10,343 $ 24,829
Other current liabilities 116,604 84,194
Total current liabilities $ 126,947 $ 109,023
Loan payable to non-obligor subsidiaries $ 608,100 $ 625,380
Other noncurrent liabilities 2,036,496 2,035,158
Total noncurrent liabilities $ 2,644,596 $ 2,660,538
Summarized Statement of Operations
Six months ended June 30, 2026
(in thousands)
Revenues
Intercompany revenue with non-obligor subsidiaries $ 72,998
Other revenue 3,158
Total revenues 44,737
Expenses
Intercompany expense with non-obligor subsidiaries (67,396)
Other expense (81,567)
Total expenses (117,545)
Income tax benefit (expense) 15,612
Net income (loss) (57,195)
Dividends on RenaissanceRe preference shares (17,688)
Net income (loss) attributable to Obligor Group $ (74,883)
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CURRENT OUTLOOK
RenaissanceRe is significantly diversified – geographically, by line of business, and by source of income and capital. We are unique among our peers in that we have both owned and managed, and rated and fronted, vehicles across the risks that we write. Our three drivers of profit – underwriting, fee, and investment income – put us in a differentiated position to absorb losses while still providing efficient capacity to our customers and producing strong returns for our shareholders. The disciplined long-term execution of our strategy positions us to continue to generate earnings even in a changing market. We manage the business with the intention to build efficient portfolios of risk that maximize profitability, employing the appropriate tactics to achieve that strategy as the market shifts.
We believe that we are in a strong capital position, driven by our earnings strength and consistency, which provides us with the flexibility and opportunity to deploy capital into the business while actively repurchasing shares when at attractive valuations. When possible, our preference is to deploy any excess capital into profitable business opportunities before returning excess capital to shareholders. We approach our share repurchase program the same way we approach underwriting risk, with a focus on risk-adjusted returns. Over the past several years, we have returned significant capital through share repurchases at what we believe to be attractive valuations.
At an organizational level, we are continuing to enhance our technology infrastructure and underwriting systems to enable us to better take advantage of future opportunities, including through the application of artificial intelligence, as those opportunities arise.
Reinsurance Market Trends and Developments
We believe we have created significant opportunities to source attractive risk in the lines of business that we write, and that such opportunities will result in superior returns for our shareholders. We are in a period of heightened geopolitical and macroeconomic volatility, and we believe that it is in times of uncertainty when RenaissanceRe’s expertise, partnership-approach and coordination across teams differentiates us as a reinsurance leader.
We are uniquely positioned to write a variety of risks, leveraging our enhanced risk and capital management technology and underwriting expertise to cover multiple lines of business. In particular, we have invested heavily to understand the influence of climate change on the weather and its impact on the risks that we take. We believe that our RenaissanceRe Risk Sciences team gives us an advantage in properly reflecting the evolving phenomenon of climate change in our models compared to commercially available models.
At each renewal, we are focused on delivering our market-leading value proposition to clients and brokers; and constructing the optimal underwriting portfolio across the business to support each of our three drivers of profit and generate capital-efficient, attractive returns, both in the current year and over the cycle. Since the step change in reinsurance pricing in 2023, we believe that the market has appropriately balanced risk between insurers and reinsurers. Historically, rate changes tend to be asymmetric, with periods of gradual rate decreases punctuated by rapid, large increases.
We have deep experience and numerous tools to navigate changing markets. In the current market, not all risks are equally attractive, and returns can vary significantly between classes of business and deals within each class. This provides attractive opportunities for underwriters with strong access to risk. Our success is predicated on the application of our deep underwriting expertise to differentiate the best deals, and our strong customer value proposition to maintain our position as a consistent incumbent. These characteristics have supported our success in more competitive markets, where clients focus on reinsurers that can anchor their programs, support them through the cycle, deploy significant capacity, bring an expert view of risk, and engage with them across lines.
Macroeconomic and Geopolitical Environment
We think that the stresses in the global economy will continue, and could grow, and that this may result in increased market volatility. Global events and geopolitical instability have contributed to increased economic inflation over the past few years compared to recent historical norms. We consider the anticipated effects of inflation, including social, economic, and event-driven effects, in our loss models, on our investment portfolio, and generally in the running of our business, and actively monitor trends in these areas.
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Central bank policy and changes to interest rates may also increase the risk of inflationary pressure. The effects of interest rate trends on our reinsurance and insurance business could be magnified for longer-tail business lines that are more inflation-sensitive, particularly in our Casualty and Specialty segment.
As a reinsurer, we are paid to assume volatility, and are intentionally designed to withstand it. The largest risks that we protect against, such as hurricanes, wildfires and earthquakes, do not correlate to financial cycles and need to be protected against in good or bad economic times. Due to these factors, we believe that our Company is generally “anti-correlated” to the current macroeconomic environment. Notwithstanding the many uncertainties and challenges that lie ahead, we believe that our track record of responding to industry events, differentiated risk management and client service capabilities, coupled with access to diverse sources of both capital and risk continue to position us favorably in the current environment.
Three Drivers of Profit
We believe that having three distinct sources of income allows us to maintain profitability throughout a wide range of market outcomes and makes us more resilient to catastrophe activity. The strength and resilience of our business demonstrates the success of our strategy of making earnings less dependent on any single market condition or source of volatility.
Ultimately, strong underwriting underpins our three drivers of profit, because each driver is fueled by our underwriting portfolio. Typically, our Property segment contributes primarily to underwriting and fee income, and our Casualty and Specialty segment to investment and fee income. This construction is by design, and we believe that it is the optimal way to generate returns in the current market. Underwriting is the core of our business and provides significant upside to the earnings base from fees and investments.
Underwriting Income
Through disciplined underwriting, we aim to manage the cycle and allocate our capital to the business that will generate the best returns. Portfolio construction is a continuous process, and we believe that we have constructed a large and profitable underwriting portfolio that has been bolstered by our ability to participate broadly across our clients’ portfolios. We aim to be a provider of first choice and a trusted partner to our customers to help them manage their risk across portfolios and market cycles.
Each of our reportable segments has a different risk and volatility profile, which we believe contributes in distinct and important ways to our three drivers of profit, and in particular our underwriting income. The Property segment is inherently more volatile, but also provides meaningful underwriting income in lower catastrophe quarters as well as strong fee income from third-party capital. The Casualty and Specialty segment generally provides a more stable underwriting result over-time, along with significant investment income stemming from capital invested on longer tail risk in certain lines of business. These segments also provide us with diversification across our loss reserves and the tail of our risks, which allows us to better manage changes in loss trends, whether favorable or adverse, across our underwriting portfolio.
We believe that our larger size and greater diversification has allowed us to deliver strong financial results even as the underwriting market is facing headwinds, including the impact of large loss events, lower interest rates and rate changes in some classes. We have created a large, well-diversified combined portfolio with deep partnerships with brokers and clients. We continue to remain focused on capturing attractive opportunities as they arise, while exercising discipline to effectively shape our portfolio to maintain desired lines.
We have continued to focus on prioritizing margin over growth. We prefer top-line growth when it makes sense, but reinsurance is a risk business where it is more important to know when and where to grow the business to be able to deliver results for our shareholders over the long term. This reflects disciplined risk selection and cycle management. In an evolving underwriting market, discipline is not only about how much business you write, but also what you keep. Our success over the years is predicated on our institutionalized underwriting culture and integrated operating model that allows us to exercise strong underwriting judgment, balancing margin, growth and the value of client relationships.
We assess the market from both inward and outward perspectives to build an informed view of where the best risk actually sits. We utilize various tools to achieve the optimal mix between risk and return across our diverse book of business, including exercising risk selection to concentrate on the specific accounts and layers where the economics are strongest, managing line sizes, and then leveraging retrocessional
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purchases and Capital Partners vehicles to shape the risk that we retain. This embodies our gross-to-net strategy and allows us to grow the overall portfolio where we see opportunity while managing the net portfolio to maximize long-term shareholder value.
At the mid-year renewals, we believe that our team was a leader in the market and constructed an optimal portfolio of risk. While rates were down in certain lines, as expected, our leadership position allowed us to grow where desired. We applied rigorous risk and portfolio analysis to identify attractive opportunities, and drew on the strength of our client relationships to execute on those opportunities to build a portfolio that we believe is rate-adequate in the current market. During the period, we saw favorable opportunities to purchase additional ceded protection across both segments. With our 2026 portfolio largely set, we are now planning for 2027, and we are already engaging with our largest clients about how we can support their portfolios across multiple lines.
Property
With the global impact of climate-related risks, including climate change, we expect the frequency and severity of perils such as drought, flood, rain, hail and wildfire to continue at the elevated levels we have seen in recent years. We believe that the increase in severe weather, coupled with currently projected demographic trends in catastrophe-exposed regions, contributes to factors that will increase the average economic value of expected losses, increase the number of people exposed per year to natural disasters and, in general, exacerbate disaster risk. The impact from these factors was apparent in the California Wildfires last year. However, we think that the underwriting changes that we have made, including requiring higher rates and attachment points, has optimized the portfolio and positioned us so that this catastrophe activity will have a smaller impact on our financial results than it otherwise may have.
Across the mid-year renewals, our leadership position and client relationships enabled us to grow the property catastrophe class limit with high-quality clients in the U.S. on good terms, and in the other property class, we continued to manage exposure according to rates.
We believe that the property catastrophe market remained attractive at the mid-year renewals. We successfully retained desired lines and found select opportunities to grow. While rates have declined from the significant step change in pricing that reset this market in 2023, we continue to believe that the U.S. property catastrophe business is at a strong level of rate adequacy. This is generally our business with the highest expected margin, and we successfully found opportunities to deploy capital to grow selectively, which helped offset the impact of downward rate pressure. This includes the Florida market, where we have rebuilt our position over time as rates improved, tort reforms stabilized the market, and the private market expanded.
Due to pricing in the retrocessional market, we were able to purchase more protection for the same cost, allowing us to balance our ratio of risk to equity. Our other property class continues to produce strong results, and while we have reduced exposure in certain areas where rates are under pressure, we benefit from our expertise in individual location underwriting and portfolio shaping with ceded deals.
We generally retain approximately half of our assumed property catastrophe premiums while sharing a portion with our third-party capital partner balance sheets, and earning fee income in exchange. Fee income is less sensitive to rate movements, and reduces the overall volatility of our returns.
Casualty and Specialty
Part of fulfilling our vision of being the best underwriter is knowing when to grow our portfolio and when to exercise discipline. Each line of business in the Casualty and Specialty segment is at a different point in the cycle and we continually manage our participation to achieve the best portfolio mix and balance of risk and reward. We also manage our net exposure through ceded reinsurance and other tools to help shape the net portfolio. Our prior work building strong relationships with key customers has allowed us to gain superior access to desirable business. We have focused our growth in attractive areas while reducing on deals that do not meet our return hurdles.
The Casualty and Specialty segment is strategically important to our vision of being the best underwriter as it allows us to trade with clients across classes and access the most attractive lines across property, casualty and specialty while also generating substantial float in an attractive interest rate environment. While improved underwriting margins may take time to emerge, we continue to benefit from the investment
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income generated by this business. Longer-duration casualty reserves give us the flexibility to allocate investments to higher-earning assets, so even in a period where margins remain tight, the business continues to support book value growth and shareholder returns.
Across our Casualty and Specialty segment, we have experienced, and expect to continue to experience, movements up or down across different lines of business over time. This is the nature of the business and part of managing a diversified underwriting book. Our portfolio management and robust reserving process has provided us with overall stability in the Casualty and Specialty segment, allowing the segment to remain a substantial contributor to our financial results, primarily through the investment income that we generate from the segment’s reserves. This diversification has also been beneficial when certain classes of business or underwriting years have experienced increasing loss trends and required more reserves. We believe that we have a prudent reserving process for our Casualty and Specialty segment and remain confident in our reserves.
We typically manage our casualty business over a 10-year cycle. Over this cycle, we expect there to be shifts between the generation of underwriting and investments results in this business – currently, the balance is skewed toward investment returns. This 10-year cycle is also the perspective from which we manage our exposure. We have been closely monitoring casualty loss trends, and our longstanding approach is to recognize increasing trends early. We are reflecting our insights in our reserving process to proactively stay ahead of trend and inform portfolio shaping decisions. We write a diversified Casualty and Specialty portfolio, and expect that in any given quarter, we will have some lines that are developing favorably and others adversely. In our general casualty class specifically, we have been closely monitoring trends in general liability where inflation and claims severity have been increasing, and have strengthened prior year casualty reserves. Within general liability, we are continuing to monitor improvements in claims handling, as well as rate change to ensure it is keeping up with trend. The market has made good progress, but trend continues at an elevated level and we remain cautious in our underwriting.
At the mid-year renewals, we continued to optimize our Casualty and Specialty business through portfolio mix, risk selection, and use of ceded reinsurance. We have continued to shape our casualty portfolio, reducing our exposure in select lines, such as in general casualty and certain specialty lines of business where rates have been under more pressure. As part of this shaping we also increased our use of ceded reinsurance to help protect margin and reduce underwriting volatility, particularly in general casualty.
Fee Income
We take a differentiated approach to our Capital Partners unit, with a focus on first sourcing the risks that we intend to write, and then matching them with the appropriate third-party capital. This business allows us to leverage our industry-leading underwriting franchise, improves our offerings to customers, enhances our ability to optimize our portfolios, and generates attractive fees for doing so. This complements the income we earn on our own balance sheets, creating additional value from our underwriting business and providing a solid foundation of earnings. Over the past several years, this has been a strong and consistent contributor to our financial results.
We earn fee income in exchange for sharing risk with our third-party capital partners, and while we share underwriting income during profitable periods, we also share underwriting losses. We view fee income as a consistent and sustainable driver of profit that we expect will continue to generate low-volatility management fee income. However, fees may be impacted by large losses, such as those experienced during the first quarter of 2025, which can potentially result in reduced management fees, no performance fees or the reversal of previously accrued performance fees. The fee income that we earn is recorded across various line items in our financial statements, refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional information on its impact, including for the proportion that is not included in underwriting income (loss).
Investment Income
We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. Our investment portfolio is intended to complement our underwriting portfolio, and as we have grown and diversified our underwriting business, we have also grown our investment portfolio and have greater flexibility around duration and asset mix to further shape our
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portfolio. Generally, we view investment income as being relatively less volatile and a diversifying source of income, and as we have increased the contribution of investment income through the increase in the size of our investment portfolio and an evolution in asset mix, it helps to reduce the overall volatility of our operating earnings.
Over the course of the year, we believe that we executed well into difficult investment markets by taking advantage of market volatility to improve our investment portfolio composition and maintain robust investment income. This reflects the scale of our invested assets, the quality of the portfolio, and a rate environment that remains favorable. Recent market moves have allowed us to extend duration and lock in higher yields, which we believe will continue to support our earnings power over time.
See the “Risk Factors” section in our Form 10-K for additional information on factors that could cause our actual results to differ materially from those in the forward-looking statements contained in this Form 10-Q and other documents we file with the SEC.
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