RenaissanceRe (RNR) 1 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to RenaissanceRe's Fourth Quarter and Year-End Conference Call.

Joining me today to discuss our results are Kevin O'Donnell, President and Chief Executive Officer; and Bob Qutub, Executive Vice President and Chief Financial Officer.

First, some housekeeping matters.

Our discussion today will include forward-looking statements. It's important to note that actual results may differ materially from the expectations shared today.

factors filings outcomes release. and the in be regarding SEC our in information shaping can these found Additional our earnings

today's are other also to will our earnings may call, financial financial in our During Reconciliations supplement, website and measures. renre.com. which be present found GAAP on concerning information non-GAAP and release non-GAAP available measures metrics we at

turn I'd call over like to the now And Kevin. to

read guess, joining for difficulties. Keith. call. comments apologize about results. make everybody, technical that I'm same to feel Thanks, the has I'm going the that sure We the my to to I again the Thanks, report blessed pleased everybody information. should I

them a it's time. are for I again. pleasure apologize hear who read So my them second those to to out

you a today's XXXX joining from everybody, growing Good reflecting call. with QX thank and morning, a investments. on performance financial and development rapidly closed solid favorable excellent results, note strong contribution segments, We across for

today of effects a mounting to climate to which investors we However, billion change, losses, I'd series occurrence an discussed with as $XXX changes the the as XXXX, face follow-up well in last and in for like exceeded margin my perils. increased quarter. were continued ensure of increasing seeking catastrophe a I safety begin the of to inflation remarks of of secondary

investors, ensuring capacity. reinsurers risk-adjusted January the this the in pivotal reliable, to of goals notably, we ambitious step most resulted change accomplished reset renewals -- set customers history. relationship and the can sustainable in in insurers I pricing. all a that while ourselves have access to one fundamental in report property a Importantly, of we now appropriate reinsurance in promising includes returns for more necessary These Most X our between changes high-quality and

saw average successful. The our protect undergone customers. business classes about interest part was renewal long-term in that specialty reducing percentage many will casualty I in progress on The market increases the point. casualty comments. that in two ceding investors by rate the constitutes both reduced structural in We has and stabler which equilibrium greater the a my lines, of and shift of good X commissions detail in discuss made on segment traditional casualty will

‘XX Turning of review to our like our results. At to year, two I'd end by each the performance to questions. responding

The executed our effectively. operating Starting first operating is, an We we the both an and XX%. with GAAP is with from first do financially we fourth excellent perspective have and had quarter question. a of ROE strategy

little on operating a $XXX a income X% of represents reported we than more year, million the which return For common equity.

in clear, be return I've we the superior long-term rates, our and not is despite this performance of similar take. from, results is increased benefiting capital said, equity industry I that we including and tailwinds is catastrophe opposite, improving than said returns the To business. do business accelerating level times the volatility acceptable our our XXXX a a business growing This multiple X% the many higher when roughly return That reflects materially -- income broke partners investment X% justify reinsurance quite losses. better even that needs think to on

our his comments. the the scale in Difficulty] fulsomely will higher the We [Technical more of business. made tailwinds in also investments we these growing benefit are operating address of seeing Bob

increased This diversification. quarter, the we demonstrated our also benefit of

similar this events from net catastrophic in large occur achieved reset given we loss, would if significantly expect excellent the X, at January results negative despite year. a smaller impact events, As material underwriting we

which on that If at to take, to to there's and effectively. [Technical leads to remain Difficulty] risk define substantially XXXX, and our reinsurance capital a upward was partner our strategy property believe more being my earn in our committed grow risk. we P&C second that XXXX, question. one In scale it we We more paid investments the global Have leading fee-generating word a strategy on executed consistent. continue catastrophe financial will the of that will performance trajectory continue business, this be we as we for make we underwriter

because We competitive a have chosen critical we to where value the occupy insurance this in have it position, is chain a link advantage.

insurance the landscape. Surveying

We have superior shareholders for effective it because chosen to this most the position, is deliver us over to means long-term. the profitability

Over building would profitable emphasized sustainable that support decade, platforms [Technical Difficulty]. we the have long-term past

our bottom These by adding business actions line, by and our competitive We have to confidence cat customers leverage and have has and our also products, property diversified leading increased of continue growing insurance. writer added have strategy leading capabilities. provided and capital earnings us and line scale to a business position. our top maintain new our diversified platforms, the It a secured our us being

our the we improving underwriters said, That X our target enabled we customers. us sustainable strategic focus profitability. and in improved portfolio. our to in and XXXX, optimize year, the our property the bottom when And deploy challenged to most to on recent consistency January culminated throughout significant line renewal capacity This

each drivers entered excited for couldn't we of the create material our environment current in about XXXX poised it to three more result, with of shareholders. be our and and a to value our potential I profit, the As positioning outperform.

to But detailed segments the it call. I'll on That at provide renewal for turn performance to concludes the update our the I'll comments. the the first, my over financial Bob end quarter. discuss initial of in more

again, $XXX strong everyone. of a quarter, Thanks, ‘XX return of operating reporting common XX%. with good finished on We income morning annualized very operating average equity million, Kevin, and

operating X%. $XXX For million common an the on of equity return average over just year, operating we generated of income and

more fees our to financial investments year that underwriting, and resilient results making drivers of our three are profit, performance them and increasingly this volatility. demonstrates benefiting Our

in a few points will I I'd fourth highlight. more to from but like discuss quarter results are our here a XXXX moment, in that detail

the ratio premiums net segment XX%. and profitable delivered XXXX, combined grew specialty In and every a the segment quarter been consistent two First, remained strong last by mid-XXs the written has years. casualty for performance consistently and

growing look we XXXX, into been will business and a But feel more Specialty continue the segment great in market. Kevin combined about successfully talk this to We as the XXXX. about forward and profitable Casualty positioning expect mid-XXs renewal. of the a have ratio we

our achieved books Property the in result a a continue magnitude our conditions tightening underwriting Florida importantly, January of even broke the in and despite point industry very losses. improvement But from including improved of took increased should book XXXX. terms X-percentage similar is is throughout rate in Difficulty] results. the and [Technical Hurricane, we additional property XXXX X which we benefit to major property a year, a segment performance active Second, XXXX, The a had

continues $XXX the in a management. capital capital Partners XXXX, effective business X, XXXX. our lead billion to an additional In total Third, $X.X industry the with January million third-party Capital of in third-party reflecting raised management per consistent around contributed XXXX, quarter run XXXX, in capital to in $XX to increase In managed million $XX $XX million fees this primarily DaVinci. million expect in quarter, per we an and we

performance recover also fees events. start catastrophe to We significant absent see any expect midyear to

And grew the considerably the net second finally, investment fourth in to retained half in income year of $XXX quarter. the million

increase book quarters, market net more income yields. rotated continue retained pace. at Over to a we Subject changes, the have current we investment milder expect the to to past few into

these as P&C have of we streams Importantly, a as insurer, strategic positioning scaled our global income very diversifying part efficiently.

quadrupled, was net is premiums written X.X equity five XX% Over fees the casualty times. income and investment management gross up while have doubled last common have and up years,

As XXXX, position excellent we we are we improvement for of in drivers look three feel poised with towards continued an profit outperformance. all and

accrete over par $XXX to and time. have we equity quarter by this organically million maturity grew shareholder losses million unrealized $XXX addition, In that fixed on will our investments of over

this capital of position. us All in an puts excellent

We result in in and excited the many strong are that should attractive and market in about financial a performance. very deployment beyond capital opportunities XXXX are

premiums results again and Moving first underwriting. now quarter of renewal earned the to and quarter Beginning for growth Specialty [Technical segment the be up from up rate earned combined to the $XXX expecting results about with quarter, year ratio net this Casualty net were the XXXX, XX% reported were we XX%, a underlying driver continuing Difficulty] The prior for million. and during first premiums and the Gross written Specialty year. to In and profit reflect our of strong year. we're quarter and periods in XX%. fourth premiums Net for portfolio. of segment XX% million, the improvements Casualty our were

which was we XX% of property from current property year storm segment, Difficulty] to million, had included a contained cat [Technical from and aggregates. quarter. large negative points percentage percentage cat the results XX segment a where reported our $XX large combined ratio loss These ratio had Nicole which events. remainder for events, accident from one-half loss the Property Hurricane accident year of ratio net now our impact and financial Elliott cat cat, a solid XX% about current Turning This XX%. events both The XX impacted coming of on and points and Winter of

other class accident loss from of percentage [Indiscernible] the large in large included property explosion. the there on cat XXXX and the cat X of For percentage XXXX XX% primarily quarter, property points favorable an property, events points through points development ratio from current catastrophe X events was gas was additional XX the percentage segment, driven and year the also releases for business. In by

property premiums were quarter. for for the $XXX other Net million earned

sell focus property we in attractive most the business our opportunities. catastrophe forward, as we other Going we to expect our premiums where property to business decrease shift

Moving XXXX, capital in reflecting steady to million increase quarter. quarter, our joint income partners Starting million. expect venture provide capital $XX now our quarter fees to per we in balance million, income management $XX on Management were business, where of source of sheet. around fees continuing were to fees fee and increased managed first to overall $XX the the a

amount Overall, depressed to be in with second our $XXX our joint of 'XX 'XX, quarter our interest. was impact recovering Performance as fees million remainder these we being continue redeemable start [Technical $XXX the Difficulty] shared and gains. million ventures of the expect we fees net this to noncontrolling income to reflected ‘XX. cumulative by due of the mark-to-market partners of and income operating in

X, in our stake ownership XX% Capital Partners, as long-term for Finally, [Technical from investors. Difficulty] in oriented several January room order on DaVinci of to to reduced make we

driven the exposure, on net higher higher portfolio, Moving as fourth yields was the net growing a our our retained well yields now increase by we net million, rate coupon invested financial as an quarter, $XXX investment was to as to on statements. In rotate investments, income income investment where in income investment our floating continues have assets. impact higher investment

has and Over XXXX, the money net X.X%, has X.X% retained return from yield, increased retained to yield from new reflected maturity to X.X% our which as is of annualized increased course of income investment X.X%.

basis to income XXXX, the relatively retained of expect joint flat million. on net a quarterly increases ventures. $XXX remains years, quarter declined duration at we a managed driven X.X As Overall, about X.X in first has On our result, be investment years. for largely a duration capital by to basis,

tighter fourth million. and mark-to-market -- gains retained quarter, markets, accretion of bond spreads to the In led retained equity credit $XXX losses mark-to-market rebounding of

For the principally year, we portfolio. maturity of fixed $X.X reported losses in retained billion, mark-to-market total our

last discussed assets these earn expect these over quarter, high-quality two I time back in As are we losses ways. and to

will are investment the net increased the we about hold, First, fixed they the per our through sold time. that par read in unrealized share. maturity securities over higher losses and portfolio coupons. proactively income, reinvested we Retained at where $XX.XX securities And second,

to briefly expenses. turning Finally,

flat. operating by The people Our absolute the in a points And operating the costs up return year, expense for X.X operating relatively the ratio to normal investments operating we the percentage in and increased quarter. as reflects ratio expense more increase expenses in about was environment. was

Going to expense hold forward, the flat. relatively expect operating ratio we

This activity we the we demonstrated finished of each quarter. of generated strength X% drivers the return operating a even very equity. in the with year year, of In significant strong catastrophe profit, our on conclusion, three a with growing fourth

expect XXXX, Casualty we stable business. As our from Specialty look we income continued underwriting forward and to

stable income. significant Our and investment and to Property and upside and retained rate from management terms fees segment from increasing with tightening benefit increased net performance conditions, income

that, turn the now to with back And call Kevin. I'll

Bob. Thanks,

this Casualty touched renewal and in And an on remarks, divide renewal January focus As X inflection adding marks comments I Property my given detail the segments. will success more our on our important usual, business. while between opening point I belief of will primarily for our my I our

January. many found early Property deals late late Starting or very until with renewal even The with Property. December not was

material Going rate supply significant and reinsurance the property range XXX%. demand drive that for imbalance into the renewal, in expected XX% to would we cat increases of

us to increase on better in the flexible to changes progressed, underwriting in order understood a restricting the As particular, market execute control shifted expertise cedents by remain structurally risk programs profit, restructuring allowed responded reduce in increasing renewal that market coverage as to would and and rate. portfolio. These disciplined benefited our diversify budgets. retentions, capital us They our and

rate, U.S., also reactions pay retained relatively additional limits, that increased [Technical at unwilling to were was and expect albeit Cedants return we time they drive risk anticipated this in climate require. this The marginal in to the inflation demand we risk flat, time, macroeconomic Difficulty] overall meant reinsurance the would market particularly to the Over more the as forces, continue were system. such as change by as to demand remote.

cat We efficient ultimately so most sit it will with to always should us. the risk, have assume property capital

wrote very am we with I that [Technical at JanuaryX. Difficulty] pleased the property

conditions. increased business renewed we expected, As at significantly and terms tightened rates and

as property allocation increased to profitable properties. we cat to it relative increasingly became Additionally, other

growth. Regarding top line

January on retro The renewals business, the the additional while property in to over deploy to expect mostly and most opportunities dislocated the renewals XXXX. international through and market, risk, more expect midyear. persist good in seeing Consequently, are part months. next many we on capacity of U.S. six to is opportunities reset focused We rates property

explained, the to into deploy already growth Bob to ample a addition capital As profitable achieved, have we market. in we've

and was of allowed expected, ongoing January the [Technical terms us business. to a structures. into highly we Difficulty] conditions from build retro renewal rates occurrence up to X an the aggregate This As book and strong with shift very market inwards tight dislocated materially,

backdrop, we well. seeded successes Against placements several this as our on had

our a purchased consistent strong we retro record. originally protection track First, more, to and anticipated, relationships than testament

with on our partners our reinsurance grow Second, longstanding structured able to were products. we

Finally, in Mona a albeit reduced our limit. we bond for January, issued cat early Lisa

portfolio. Given materially executed strategy we successfully believe our that market improved current and we conditions, our gross-to-net efficiency it the of

positive specialty business. our January Casualty opportunity moved our Specialty many to X and lead now Similar conditions and casualty business. in reinsurance renewal, classes quote to Difficulty] property, for casualty the for across terms profitable business. Moving Dislocated us direction At a to book. important [Technical provided and of and markets renewal

We are and across liability general in to This several slow classes. increases reducing [Technical opportunities see significant rate in continue these and Difficulty] increases casualty Rate lines. specialty to starting in D&O. follows lines

increased to cases ceding And In most specialty our scaled where In commissions were we we diversifying terror, were such lines particularly we attractive and of energy, business. demonstrated leadership as as meet margins exposure. as and unprofitable very retentions conditions reduced and terms lead maintained hurdles, cases, significant rates Lines, back margins. market marine attractive. expected classes We cyber was and well classes. achieved and and dislocated The not our some aviation did able tightened these in quote in business.

credit structure may to Our drive our mortgage focus any economic it growth. are will is renewal and that our profitable, political conditions downturn business confident we in risk and due sustained year. selection, the resilient portfolio also risk remains of occur Overall, casualty profitable and this this critically to on

our portfolio to largest likely continue be to We written grow most book, and date. we have this is and what to attractive

at mid-XXs as matures, performance. combined our business it consistent casualty ratio increasingly delivering importantly, becoming is More

the Capital Partners Shifting business. to now

We to business. have approach our always a differentiated capital partners taken

property casualty most underwriters and foremost, seek and and recognized this always because we First the This leaders underwriting is with this means, would. we it with are as and then efficient start business risk sourcing approach match to only risk capital. desirable in

capital third-party strongly and with a long of investors. aligned our and are have successful record managing we track Second, always

alongside loss events. always [Technical that we partners large reinvest the This provides Our us them any after Difficulty]. know they with to stand confidence that them with sharing

to of and only includes suite balance take. owned Finally, the Fontana, that every managed risk. rated both This risk and third-party casualty we offer for specialty sheet the we vehicles investment sheets dedicated with broadest balance

trust In a are it have This features needed did innovative, flexible as when difficult with This our capital vehicles existing allowing our and our us navigate our XXXX appreciated is and perspective success in it highly differentiated It addition in being to Difficulty] capital both investors when explains is from and institutional liquidity [Technical us we to needs to chose also allows their capital the on. and demand. is markets highly in to as it return facilitate us XXXX approach investors partners. capital. new also raising by

even scale permanent is capital business Now the partners our most of we demonstrates a part it continue our franchise. difficult that under to circumstances

future have fee benefit the We income to fully it shareholders. of the order reliable, capital to intention volatility grow to every our in of capital sustainable We low business customers. increasingly in continuing generate to bring expect our for our partners

X this January the mark-to-market end Consequently, of Fed-driven should tailwind. as losses in closing, capital brought returns was by quarter higher and should be a serve In XXXX. losses. one our [Technical marked ongoing which investment third cat with the in the renewal business partners year, investment strongest in history, strong Difficulty] coupled growth The materially elevated financial our was

As a XXXX. result, deliver over to value expect of we shareholder material the course

will we the close now for will answer the make and the myself usual, we those questions. coming at stay beginning. all Apologize Bob call your of Thank over had available that to Both the questions. difficulty on As call hour you. turn to sure the after

[Operator first now Instructions] Wells from Fargo. We'll take Elyse from question Greenspan our

include based morning. Good at thanks. assuming first January of of able of year? guys year generate some together What normal and were ROE XXXX book do X year? could a your think question, cat business to Hi, the put on rest -- you this that the is book expectation the you business [Technical My for Difficulty]

risk the the think addition with the We low-end very portfolio, flat, most for footprint, growing of reducing cat targets in relatively one This the holding risk had. of PMLs RenRe Elyse. particularly I increasing ourselves, distribution, at with capital. aggressive third-party of Thanks, our property including profound renewals, the went was has ever

to cat normal a inure things shareholders benefit So be the there of year. all should of those will

way quarter of might last it a will If this looked reasons. for distribution. One to at couple of I third companies think would couple end we helpful lower need would our low at if is, they take the significantly affect to more how loss of could year, we year of One, occurring that and primary be just risk be expect us. their about of risk the in retain Ian losses think a Hurricane

have more in, there Secondly, should loss. premium coming so we more will reinstatement a be rates,

loss. So a I we think perspective, that from smaller have would

between look that the I Elliott and expect market, to to market be and fully is were different the would almost higher to which retentions, loss retained be terms reinsurance year. storm Winter we the conditions If at tighter not rates, and primary increased within happened than last what transferred

it. investment it's on to would the year returns, we put should returns higher between profitability repeat substantially So expect high be difficult growth or substantial number in ‘XX. the exact to rate specialty, we've increase, achieved, of have But an additional and ’XX a I

question. And then second my

your for a said So just PMLs you probably rate your I retentions flat, going We've right heard consistent. are increases system. primary lot So in of right? right? exposure companies, But there's about the believe, is higher

it premium the As see growth the within coming property in you just together you all ‘XX? put do how together, business cat

Yes.

So U.S. be to of about our renewed. limit property yet cat half is exposed

through XXXX. achieved So will and put it kind at I anticipate of just in of persist that what context, to we the rest one-one

returns the reducing about portfolio, to of the the of level probability the in tail [Technical flat So our the distribution Difficulty] and hold increase was by high relatively the it thinking of distribution. objective of end

cat property a from perspective. optimistic feel I So

is property from property cat other say increasing would capacity portfolio to property capacity the book. to overall our the within I our property by portfolio allocated adding thing we cat book other The

cat growth the that by we A bit substantial us in from on little growth property. capacity will will achieve other reducing come a of So property bit creating portfolio.

you. Thank

Suer. Thanks, Elyse.

comes America. Josh Bank question next from Our Shanker of from

little about roll acquisition Yes, on they thank specialty of the just book? what ratio seating talk through you. a hundreds we the might cost points How Can the And how casualty and alone. we many commissions. bit basis see will quickly --

it's casualty as mentioned, portfolio. on X average, I So for percentage point about the

within on bit the became little a a lines, the through there's to We elevated property specialty We and the about specialty And cat tend talk growth several casualty energy me which [Technical substantial it marine because increased that Ukraine Difficulty] dislocated though. are fact ceding of growth that based in segment. of and that is had first, losses directly. commissions War particularly portfolio. -- also degree risk, in Let

earn we So the just as premium.

we next what XX the XX than from pricing over a to different months, equation. So do

quickly. it I number So have drop a more through will the to to don't earn GAAP number though.

look, mean, like spectator. And you Or where industry everybody broadly, maybe the a seem not than rate? is It play. for that XXX is specific say XXX XXX and points basis points, you is to more typical? basis just basis does run commentary points think I greater Do is

much typical. changes, performing be to we deals pretty a think ceding been I there stickier. and that were have are and it's And optimistic better bigger I deals commissions could little but point had where

macro how the So I use industry. would for X% portfolio good I as consistent with discuss benchmark the a is it way the is, and

your in your own we to: that commentary past. loss are your own whatnot and risks own evaluate the of in said of where portfolio b, the loss set a, new picks and data using And you picks terms loss and the in and understanding

risk that the of have about changed, discussion property relatively changes, this inflation We risk part how also is changes phenomenon. other drove the would that year. models did So in say run I'll tweaks through not the natural it it's from if view to important go We change market. for well expected substantial understanding reflected. you the [Indiscernible] back through our an I reasonably the rate year was climate XXXX, of and consistent last normal speak loss model. to from our had or

went So we normal our through process.

this risk-adjusted we achieved experienced XXXX. in change much year than have we more rate similar would is rate the to the So change that

you're at own to yet on because super And pick picks the specialty have the of in we're maybe are the holding you are sort are back about book now see and guess, said to in experience? be -- cash where being going you're picks just set talking conservative I you and we have where full data ability point Well, your of being the the more to I'm time your loss the using the don't losses? you data sort and -- loss about confident based aggressive

majority based at experience is The it our this vast point. of on

We development We your our about of are reserves. always portfolio. our own at -- looking cautious point industry to being test metrics with

I think we previous news we've mentioned on calls, bad news. good before generally take

wait we it's call not curves one-third a substantial, So but for to I'd own and based recognizing adjustments. our I'll curve that's of before about we on think that when the say it, news. that's own of good about think develop assessment typical appropriate for the industry, to our making

Okay.

Given the questions. answers. for please. Thank other shorter time, your Take you some

Sure.

question comes from Our Autonomous. Tunis Ryan next from

XX%-plus a I you guess there morning. business. if those like good been back In XX% the years ROEs, but thinking XXXX. were it like about no cat even business were maybe have would short to business Ren Kevin, a have make today of back the what a what the differences post concessions the question, that fallen think where I health years, today ROE it think a your cat thanks, in was in versus XXXX. like years, relative XX%. just would Katrina? cat to to to I net following Hey, you expectations. I different renewal I normal that linking that, mean, us guess, thought ROE it happened might the realize little at guess primary I in are property comparison, just relative if

geographically, to lines as The less one-one more far more XXXX, similar of hardening this more the I are XXXX, ‘XX attractive market. broader guess. being happened So in and what there lines it's think in -- because similar to and far

to But when ability I in had ‘XX. to ‘XX. answer Difficulty], about don't than now was regard your with And stronger so I [Technical built it it question think our to we've what comparing to it's

to attractive at the look market The which Partners business, increasing. different, got levels. at portfolio harvest Capital I returns from to the portfolio, a bigger investment are is continues stronger. the think the a fundamentals level property And ability reset casualty We've then for us little is but much contribute, profit the extremely of

or Got of renewal just you at aspects again, little they a of it wish just, idea I bit come have Ren? it. of more whether for to the did that kind on industry guess, for than conditions the some or end. together were would renewal, And and it's Any that terms rate, potentially seem been the favorable

often, of to a dislocation significant renewals that and providing structure a achieved which placed alternatives market, that programs. renewals options rewards. how -- we absorbed a advantage placements skill creating there's Late been it's outsized been a their about renewal because can where and work hasn't to means the by companies reap our private is We fully by number helping think

capacity and think The other the buyers made The not one places. we decision capacity, a area the where how we market U.S. that some the a saw think to experiencing diminished. -- in much we've miss, come spend. want to in seeing. wallet I appetite they market for that think the to thought it's is how their the more And wanted delay, price a come much a Europe a to which And capacity would I of add to delay the of ultimately as coming sustainability that limit we're bit at think I believe market, will We has hardness what they is one-one. don't that buy we're to to

capability because capacity the be the I'm the the So if structuring that's capital to able I needs to think does look to it, again, But on to about I'd concerned I'd surprise think to and it come area say market. come at us we've of an that it, got when I do one-one. And service them. to a market, the was bit a I not say that

of quite more look then Got with other what property. year perspective? bit away a business property more could And premium. property another I it. going from guess indication lastly, line the property Other has Any next toward obviously cat top just capital like from

in more the let increase a getting It's the slowly losses quite deliberate of other portfolio, comes than -- in very good occurring me we're just cat portfolio. nature the property change. property it Yes. rate And but

into a So I [Technical put as that, to we're how trade think making market. smart to leveraging Difficulty]

being don't or one I worry particularly So the about up other.

that market exceptionally back And accretive the strong. will begins when is there in into opportunity footprint again, leverage Our emerge we it. to as

is emphasize right to -- the cat continue to there. now, but and So preferred, we're going growth property

long bit, in is the we're to other a trade. shrink short grow of cap we're a it, I property, property In bit to which good going quite think going a and and

KBW. from next question Meyer comes Our Shields from

specialty Thanks, flat I basis. correctly? casualty Am with, combined other about I words, on mid-XXs, thinking In guess is to expectation ratio begin in a that like and it the year-over-year picking sounds the

my up down earlier like was losses. prepared you move for us XX.X, prepared loss In as with we question we saw comments the kind year, -- year, we This did out mid-XXs in to comments, that we point this growth, still and events the one-one. that mid-XXs say continue year, that range. had And the Difficulty] should Ukraine [Technical of with thanks I'll expect Yes. maintain and in the the range on

feel should mid-XXs. up So comfortable about very down, we it and move but

what bit expecting Okay. No, that's more fair enough. a understand I the I guess I saying about improvement, range. you're little but was

expectations do the how season, going you compare at If one-one you guess, back actual your look to the capacity extended deployed I in. renewal

did have renewed. that's about mentioned, well. I the the -- property limit. U.S. I be extremely yet most cat to think area And is for of I -- XX% the relevant we that question again, We would as say where

how it get not say would needed that the less more hands, nimble I market. little the we to as how the just that. a change yes, to demand on to bit anything came there did customers' much that, we was strategy to with limited to with our That and be did meant deploy, So

really traded So albeit a about good feel from are X. I the expected back to the bit December my we perspective, market, than going we where dynamics into different little

can, to Okay. that. helpful. question, last if I with That's And continue guess I just

higher about lower come you talked demand expecting that or that that to expect back. You layers Is to coverage back? the come of

a good will higher It it's question. Yes, layers. be

that think trade statement to companies getting build low-end going continue is point, companies at this going bolstered be them I protections. rather to sheet income the income let -- they'd to think protections to primary larger -- more to me I that's -- rate. the And have than are company statement rather will balance by need continue make

The one in that Florida. to is exception

the there's people is some weather think above below Florida to think the -- or I the FHCF. about way sometimes limits market there's

be will end for very some there think FHCF, limit I the be purchasing still at purchased Difficulty] limits a be more I which low. the new need [Technical broadly, top of But below of will programs. the

so Thank fantastic. Okay, much. you

Yes.

comes Yaron next from from Our question Kinar Jefferies.

morning. good Hi,

morning. Good

on delineating kind question, look back a the like to First realizing you can of how really help how the more question be can't the exactly in ’XX, maybe underwriting, in year but NII much cat of prognosticate look us would it Elyse's underwriting? ROE Would, ROE and maybe normal versus weighted coming weighted improvement to you with the you NII? also going what precise see from more

much and more that. investment I've break I'll net point We're a me start seeing tried with to good improvement, let's that. help income. try question. It's

basically a improve look is the You coming the year, bring started we're -- take, market the quarter up of with which relative performance reflective capital million or from we've on you fees and $XX million, probably ending $XXX moves. management Specialty on just based through. give from first subject to capital of that we the through to in over on see And net partners guidance see raised. at our Casualty million starting that $XXX $XX that to earned -- going by The that business the XX% we'll giving quarter course will to here, premium million the

that drivers are that in to at very talk of we the profit about should better. look do something things And look as those at content we property we continue as stable. So

As Kevin has pointed better, can't should out, control do you property mother nature. but

be You can the to to can. able it to well you as only structure book as adapt

that core we're that's we to So trying cost of capital return above is there to there a that the solid portray support our out does stream that of that feel just in with. a picture be stable, is level earnings

more in maybe like mouth, little me you but bit in noise. and to the maybe then maybe in your top more of specialty improvement from -- cat, would margin you're want the That's helpful. property of growth can saying sounds put clarify the but would ‘XX? to words it. some of underwriting that it And Is a in casualty be growth come underwriting fair I Got help or the And book, that don't the line a summary? sort

didn't mean I to leave that impression.

We are growing property substantially. cat

other talk reduce of the that little other bit grow. trade -- Property a to about properties. bit how cat so as up portfolio. Again, will property as on and the going whole set a substantially, being kind to will will a We we're grow

casualty We dislocated will from the that specialty piece of growth A the good within casualty specialty lines. portfolio will grow portfolio. come some

just we premium I'm because having third-party that at The level capital the I a of net-written and managed have the focused background, final say important. an would changes are premium just thing lot underwriting is on level

into but of there, being product So will premium better the market, the are in better Upsilon that of us written premium, that written and that reduced because the was change net gross Upsilon. it's We RenRe Upsilon reflected because to the more footprint sold specific sold shift. net the economics into coming and DaVinci,

does And does growth parallel cat -- same the that or the at in guess, capital? the time, property specialty this impact and I shift how excess casualty,

portfolio have the Southeast renewal this Southeast into and and Hurricane, more to was situated We to. significant specialty going that we're So into portfolio will from capital set the deploy the peak capital still It are within we a an we extraordinarily the casualty, is should within issue. the capital we -- never well exposure outside Within U.S., position, seeing. opportunity going Hurricane. remain choose opportunity and grow

Thank you.

Meredith from comes question Brian next UBS. from Our

Great. of here Thank couple just you. Hey, you, ones for Kevin. a

clarify there. to you want what just I just think, said I

pretty in So net substantial see premium you written should growth. premium some cat retained growth

Yes.

clarify that. Okay. want to I just

on it's pricing what's just legislative the to any is renewals market? going there purely better? I'm in look on And it So of we happen your does six-one make just any question, Florida, as the balance sheet, that appetite the great. second Or -- your and at changes then curious, with rate

to At I'm in the not strategically will because structure of improve health to pleased other specifically thinking position appetite -- to we the the the rate, It of steps beneficial. going book Florida how attachment Florida, the and that our that taking in be change we're margin, the portfolio. drivers it's how opportunity as they're will market.

I you. guess Got And last Great. just quick then question.

I better-than-expected out think you Europe? kind of referred Europe increases. to allocation business you being it Have like rate your with earlier. increased It to of turned sounds

than and still driven in expected, kind seeing able and of capital we is by early office we're Capital we it. saw more to but the Yes. by still opportunity Southeast, executing. into opportunities Zurich Europe well, driven The U.S. leverage performed in

Thank Great. you.

Yes. Thanks, Brian.

Zaremski from from Mike comes question BMO. last Our

the Florida great. question on Hey, Brian. from Follow-up

capital social can counterparties some -- a the might more I'm reflecting than of time the So meaningful. this curious that in that some maybe see changes. correct It on cycle through that had kind your guess not I versus out? answer do XXXXs, to given the do legislative like, sounded now is from Maybe over counterparties over me. the years, I'm maybe then. aspect play just you a expect we time to -- different to current of Or coming question about just time inflationary -- the time past your wrong, you've much But or Kevin, be changes maybe these And back them legislation. there are the more you go need aren't improve also have legislative

the for question. thanks Yes,

risk had take have bear can we materially they footprint the their loss. have staff. that our that the The with particular, be think the changes much much of a with some bit of piece bigger there early exposure I to different early wind of the or of profile much were is a post a that from large difference should A a claims that tend Florida own a companies XXXX. Southeast and XXXXs, uncertainty we They market. local it companies than comes bring legislatively, -- participating of bigger to loss -- made in the big can have lot nationwide in a in the higher retention. infrastructure They having make Southeast

will drivers particular, just capacity terms I'm than to much Florida trying the more were be of transparent changes of again, that and in the deployment But rather driven for point, and made. Southeast around macro be the legislative environment and that the price deal the attachment our

about swoop or of capital to hearing favorable. just clear some Okay. are kind new you your my in seeing coming supply-demand for And would on of curious, in we're feel Do some new and capital -- coming marketplace. about you dislocation? kind to capital. be to midyear seeing the hearing expectations But the additional providers We're headlines be continue on of follow-up to

of for you know I I underwriting. of successful been capital. mean, of obviously, hear rumors. looking the And people bringing It's the all uniqueness capital. the the the because offering we've and expertise

that think will continue. I

So new should come capital in.

them I is think to to the for natural a have conversation here. want place

it's big unlikely years that's capital bit of if think the I seen than a in ’XX, getting a little in. seems other dislocated class as which coming little -- more we've third-party

point us, execute is if the capital and look because the I to going of the disrupt platform disrupts third-party market, our ability flexibility unlikely it's this market. at at into Regardless, to something of it's to be our that

So point, we're something not this that concerned but watching about it at closely.

you. Thank

to will our back for I the now O'Donnell. reached Kevin have Q&A. time allotted call We turn

So for extra you the thanks, on as minutes. few a everybody. appreciate appreciate I staying I questions well.

on I to those any the For But happy follow-ups. apologize difficulties. for that the to have getting call, trouble take

long of as they the able into to couldn't of be the impressive be I've I've seen markets, I doing As build. team prouder this of far this been market, the and a the execute performances portfolio for was from to that renewal lot and different this most I've seen types Renaissance one a renewal, ever time, of

thanks So next speaking you to with and forward again, look quarter.

at the fourth quarter full-year XXXX have your disconnect line and time, day. and and RenaissanceRe concludes call wonderful This this Please webcast. earnings a