Bermuda-based reinsurer RenaissanceRe Holdings Ltd. (RenRe)’s underwriting profit in the first quarter of 2026 was US$588.8 million, a significant improvement from the US$770.6 million loss in the previous year, and gross written premiums (GPW) fell approximately 17% year-on-year to US$3.5 billion.
RenRe is off to a strong start in 2026, with solid contributions from all three profit drivers. The improvement in group-wide underwriting results was reflected in a combined ratio of 73% in 1Q26 compared with 128.3% in 1Q25, partly due to the relatively small impact of the huge loss in the quarter.
Net premiums written (NPW) for the entire group fell from $3.4 billion to $2.7 billion, while net premiums earned (NPE) fell from $2.7 billion to $2.2 billion.
Net profit in the first quarter of 2026 reached US$284.6 million, an increase from US$161.2 million in the previous year, and operating income increased to US$590.5 million from a loss of US$69.8 million last year.
In the reinsurer’s Property segment, total premiums fell 20% to $1.7 billion as the catastrophe category declined 23% as the first quarter of 2025 included $338.4 million in recovery premiums, primarily related to the California wildfires. The total revenue decline also included a $36.4 million decrease in other property categories, primarily due to lower rates for disaster-impacted operations. In 1Q26, real estate NPW fell 26% to $1.3 billion, while NPE fell 28% to $900.8 million.
During the quarter, RenRe recorded net favorable development of $62.6 million in the catastrophe category and $98.1 million in other property categories.
In the first quarter of 2026, the real estate segment’s underwriting performance improved to a profit of $593.9 million, compared with a loss of $607.2 million in the same period last year. The combined ratio increased by 114.6 points to 34.1% in the first quarter of 2026.
In the company’s casualty and specialty lines division, GPW fell 13% year-on-year to $1.8 billion, NPW fell 19% to $1.4 billion, and NPE fell 13% to $1.3 billion. RenRe highlighted the decline in the general casualty and other specialist categories.
Underwriting losses in the casualty and specialty lines segment narrowed from $163.4 million in 1Q25 to $5.1 million in 1Q26, with the combined ratio improving 10.7 percentage points to 100.4%.
In addition to strong underwriting performance in the quarter, fee income increased by more than $63 million to $94.1 million in 1Q26 from $30.5 million in 1Q25, including $72.2 million of fee income recorded in redeemable non-controlling interest net income.
On the assets side of the balance sheet, net investment income increased 3.7% year over year to $420.5 million, although net realized and unrealized losses of $421.9 million, primarily from higher Treasury yields and equity losses, resulted in total investment results of $19.1 million, down from $756.1 million in the prior year.
In the first quarter of 2026, RenRe raised $61.4 million in third-party capital, including $46 million from Medici and $15.4 million from Medici UCITS.
Kevin J. O’Donnell, President and Chief Executive Officer, commented: “We started the quarter strong with significant contributions from all three profit drivers. We generated net income of $284.5 million for our common shareholders and $5,905 for our common shareholders. With operating revenue of $10.5% and an annualized operating return on average common equity of 21.8%, this strong performance was underpinned by underwriting, and we achieved a low combined ratio of 73.0%, reflecting the strength of our underwriting decisions, thoughtful portfolio construction and disciplined reserving approach.
“We continue to shape our underwriting portfolio to deliver strong returns for our shareholders. In a highly competitive but still attractive environment, we have successfully deployed additional constraints into our highest margin business, Real Estate Disaster.
“Fees and investment income together have contributed to a durable and diversified earnings base, with management fees stable, performance fees increasing, and investment income remaining near peak levels. During the quarter, we took advantage of investment market volatility to reallocate our portfolio, reducing our gold position, increasing investment grade credit allocations, and extending duration by half a year to further benefit from still attractive interest rate levels.”
“We also repurchased $352.5 million of stock during the quarter at an attractive premium to book value, reflecting our confidence in the intrinsic value of our franchise and our commitment to disciplined capital management. Taken together, these results reflect the strength and diversity of our platform and position us to continue compounding our book value per common share over the long term.”