RenaissanceRe unveils quarterly dividend, share repurchase program renewal

RenaissanceRe unveils quarterly dividend, share repurchase program renewal | Insurance Business New Zealand

Reinsurance

RenaissanceRe unveils quarterly dividend, share repurchase program renewal

Half a billion authorized for buybacks

Reinsurance

By
Kenneth Araullo

RenaissanceRe Holdings has announced a quarterly dividend of $0.39 per common share, payable on Sept. 30, to shareholders of record as of Sept. 13.

Additionally, the company’s board of directors has renewed its share repurchase program, authorizing up to $500 million for buybacks, including remaining amounts from prior authorizations.

The program will continue until the full authorized amount is repurchased, unless terminated earlier by the board. RenaissanceRe said that it may repurchase shares through open market purchases and privately negotiated transactions, depending on factors like market price and the company’s capital needs.

Recently, RenaissanceRe also reported its financial results for the second quarter of 2024. The company posted a net income available to common shareholders of $495 million, reflecting a strong financial performance. Operating income available to common shareholders was reported at $650.8 million.

The company achieved an annualized return on average common equity of 21.4% and an operational return on average common equity of 28.2%, highlighting effective capital management and profitability.

The firm experienced a 29.2% increase in gross premiums written compared to the second quarter of 2023, totaling an additional $773.9 million. This growth was attributed to a 25% increase in property premiums, which added $350.5 million, and a 33.9% rise in casualty and specialty premiums, contributing an additional $423.4 million.

Meanwhile, its full-year results for 2023 revealed that the company achieved $2.5 billion in annual net income available to common shareholders and $1.8 billion in annual operating income available to common shareholders for the year 2023.

For the full year, RenaissanceRe demonstrated strong performance across its three drivers of profit, including underwriting income of $1.6 billion, net investment income of $1.2 billion, and fee income of $236.8 million. The combined ratio for the year was 77.9%, with an adjusted combined ratio of 77.1%.

Additionally, the company successfully raised $1.2 billion of third-party capital in the Capital Partners unit, with an additional $494.8 million raised from third-party investors, from Jan. 1, 2024.

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