Bermuda-based reinsurer RenaissanceRe Holdings Ltd. generated underwriting income of $426.1 million in the third quarter of 2026, as an underwriting gain in the property segment more than offset losses in the casualty and specialty segment, while mark-to-market losses of $879.8 million pushed the firm to an overall net loss of $161.4 million in the quarter.
RenRe’s three drivers of profit, underwriting income, fee income, and investment income, made solid contributions in the third quarter of 2026.
Group-wide, gross premiums written (GPW) decreased to $2.1 billion in Q3’26 from $2.3 billion in Q3’25, driven by reductions in property and casualty and specialty. Net premiums written (NPW) decreased to $1.7 billion from $2.1 billion, and net premiums earned (NPE) fell to $2.1 billion from $2.4 billion a year earlier.
Underwriting income across the Group of $426.1 million compares with $770.2 million in Q3’25, as the combined ratio rose to 79.7% in Q3’26 from 68.4% a year earlier. The adjusted combined ratio moved to 78.6% from 66.6% in Q3’25.
In the property segment, GPW decreased more than 14% year-on-year to $628.8 million in Q3’26, as NPW fell 16% to $580.9 million and NPE reduced by 11% to $829.7 million. RenRe attributes the lower GPW to rate reductions across both the catastrophe and other property classes.
The property segment’s Q3’26 combined ratio increased by 16.9 percentage points to 32.4%, and the adjusted combined ratio increased by 17.1 percentage points to 31.3%.
The division also benefited from net favorable development of 32%, driven by net favorable development of $178.2 million in the catastrophe class, primarily from the large loss events in 2021, 2022, and 2024, and net favorable development of $86.9 million in the other property class, primarily due to favorable attritional loss experience.
In the casualty and specialty arm, GPW decreased 7% year-on-year to $1.5 billion in Q3’26, as NPW fell by 21% to $1.1 billion, and NPE reduced by 15% to $1.3 billion. The lower GPW in this segment is mainly due to exposure reductions across the general casualty and professional liability classes.
In contrast with property, the segment delivered an underwriting loss of $134.5 million in Q3’26, which is steeper than last year’s loss of $21.3 million. The combined ratio deteriorated by 9.2 percentage points to 110.6%, and the adjusted combined ratio weakened by 10.2 percentage points to 109.5%.
During the quarter, RenRe’s underwriting results were dented by $191.5 million of large loss events, of which $133.3 million had a net negative impact on the casualty and specialty segment, and $58.2 million had a net negative impact on the property business. Losses to casualty and specialty include almost $70 million from the Middle East War, more than $59 million from the Ras Laffan Explosion, and more than $4 million from the Colombian earthquake. For property, the Columbian earthquake was $52 million and the Ras Laffan Explosion almost $6 million.
Fee income, another driver of profit for RenRe, totalled $81.7 million in Q3’26, so down by roughly $20 million from the prior year’s $101.8 million. Management fee income fell to $48.4 million from $53 million, and performance fee income fell to $33.3 million from $48.8 million.
During the quarter, RenRe raised third-party capital of $152.6 million, mostly through its Lighthouse Cat Bond Fund. The reinsurer also returned third-party capital of $249.3 million, including $171.2 million from Upsilon Diversified, and $61.6 million of excess capital to investors in Fontana.
On the asset side of the balance sheet, net investment income increased slightly to $440.8 million in Q3’26, although net realised and unrealised losses on investments of $879.8 million, driven by $899.6 million of net losses on fixed maturity-related investments, primarily due to increases in market yields during the quarter, led to a total investment result of -$410.5 million, compared with a gain of $762.8 million a year earlier.
All in all, RenRe recorded a net loss of $161.4 million in the third quarter of 2026, compared with a net income of more than $907 million in the third quarter of 2025.
Operating income totalled $512.6 million in Q3’26 compared with $733.7 million in Q3’25, with an annualised operating return on average common equity of 18.9%, down on last year’s 28.2%.
Kevin J. O’Donnell, President and Chief Executive Officer, said: “We delivered another strong quarter, generating an 18.9% annualized operating return on average common equity and a 79.7% combined ratio, with solid contributions from each of our Three Drivers of Profit: Underwriting, Fee and Net Investment Income.
“Our strong capital and liquidity position gives us the flexibility to pursue underwriting opportunities while returning capital to shareholders. We repurchased $310.1 million of shares in the third quarter and a further $143.8 million through October 23, 2026, reflecting our commitment to strong capital management.
“As we look forward to 2027, we have the underwriting expertise to serve our customers and construct an attractive portfolio, our industry-leading fee business supports durable fee income, and significantly higher new money yields will compound net investment income over time. Taken together, these Three Drivers of Profit provide a diversified earnings stream, and position us to deliver attractive returns to our shareholders through the cycle.”
