RenaissanceRe (RNR) Q3 2025 Earnings Transcript

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Date

Wednesday, Oct. 29, 2025 astatine 10 a.m. ET

Call participants

• Chief Executive Officer — Kevin O'Donnell

• Chief Financial Officer — Robert Qutub

• Group Chief Underwriting Officer — David Marra

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Full Conference Call Transcript

Kevin O'Donnell: Thanks, Keith. Good morning, everyone, and convey you for joining today's call. Before we begin, I privation to instrumentality a infinitesimal to admit the devastating interaction of Hurricane Melissa. Being successful Bermuda, we are acquainted with the challenges of hurricanes, but the standard of this tempest is unprecedented, and our thoughts are with the radical of Jamaica, Haiti and Cuba astatine this hard time. Shifting present to RenaissanceRe's 3rd 4th performance. We delivered different beardown 4th with operating income of $734 cardinal and an operating instrumentality connected mean communal equity of 28%. In aggregate, year-to-date, we person earned astir $1.3 cardinal successful operating income and delivered astir a 17% operating instrumentality connected mean equity.

Finally, we grew our superior metric, tangible publication worth per stock positive alteration successful accumulated dividends by 10% successful the 4th and astir 22% year-to-date. These results are accordant with our way grounds of beardown returns implicit the past 3 years. In fact, since Q4 2022, the 4th aft Hurricane Ian and conscionable anterior to the measurement alteration successful spot CAT, and we person delivered operating instrumentality connected equities supra 20% successful 10 of the 12 -- successful 10 retired of 12 quarters with an mean instrumentality of 24%. As a consequence, we much than doubled tangible publication worth per stock during this period.

As beardown arsenic our show has been implicit the past 3 years, I judge we tin proceed increasing tangible publication worth per stock successful the aboriginal astatine an charismatic pace. This is due to the fact that galore of the factors that person contributed to our occurrence since 2023 should persist into 2026 and beyond. Looking backmost implicit our achievements. First, we grew into an charismatic spot CAT market, expanding our spot CAT portfolio from $2 cardinal of gross written premium successful 2022 to astir $3.3 cardinal today, which creates a beardown basal of nett successful our portfolio going forward. Second, we focused connected preserving our underwriting margin. Our mean combined ratio successful spot CAT since 2023 has been astir 50%.

David volition explicate the galore tools we person to sphere this borderline going forward. Third, we astir tripled our superior spouse fees from $120 cardinal successful 2022 to conscionable implicit $300 cardinal implicit the trailing 4 quarters. As we person discussed, these fees are consistent, debased volatility summation to our net watercourse that should proceed to turn successful 2026. Fourth, we grew retained nett concern income from $392 cardinal successful 2022 to astir $1.2 cardinal implicit the trailing 4 quarters. Despite declining involvement rates, we expect concern income to persist and perchance turn implicit clip arsenic our plus basal continues to increase. Finally, we returned implicit $1 cardinal successful superior to shareholders truthful acold this year.