RenaissanceRe (RNR) 7 Nov 242024 Q3 Earnings call transcript

Good morning. My name is Jim, and I will be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe Third Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Keith McCue, Senior Vice President of Finance and Investor Relations. Please go ahead, sir.

Jim. you, Thank welcome and Third Earnings Quarter Good to Call. Conference morning, RenaissanceRe's

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

First, some housekeeping matters.

today. statements, the will results important updated to that new actual expectations expectations of for discussion today including results It's Our our differ operations. from really may shared include forward-looking and business and note

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

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

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

morning, Thanks, and average This delivered We of call. billion Year-to-date, operating million for on I that joining a XX%. common quarter of pleased return you in earned of $X.X today's have thank equity. RenaissanceRe return XX% to we and on strong an performance. delivered operating income report $XXX operating another Keith. am operating earned equity Good over represents everybody, income.

a Our team. results quarter strong were performance to this by entire the due

XX% on when line underwriting, I have these businesses Year-to-date, into show line have in Property X been X into business. In to believe to of a between business years demonstrated that these our been attractive little very our sign superior our returns and persist of are top Each we the and markets abating. are aggressively depending XXXX. our Specialty continues grow well. growth we particular markets XX% Both has perform business of delivering can drivers profit ability favorable. of

levels to a leverage, decades. our attractive to prior significant investment In income our in earnings. and rates to elevated any point elevated the remain These allows with increased at investments, relative asset X over almost remain rates, have persisted interest combination contributor

continues Capital while fees. the consistent Finally, fees already capital management to grow, one of third-party performance our of generating attractive business, Partners largest managers and

Our across each drivers value our not we're Validus year. already acquisition. acquisition to last But over of significant only contributor the X is from that has creating a Validus growth way been of the the

integration by purchased Our recently bringing and completed capital also unlock with in efforts would risk resulted have our value onto liquidity. knowing significant capital it sharing partners. and our we Validus We platform

optimize forms multiple allowed capital to capital, of best to structure us access have extension, by We its which profitability. efficient and,

we Prior we how optimization Validus equity call acquisition, portfolio billion what of had Validus X-X-X about explain to this achieve way $X is capital. easiest the transformation. The to the has

we left close, amount amount which a of $X represented prior $X entities the this run we over payment. last the company was dividend to the Just through transition reduced billion capital, to through was billion This the acquired needed year.

Validus created sheets our rebalance main to And the sheets, This increased company. for financial shareholders. fees support our our our enhanced business this sheets, for our partner on $X by X owned and farmers customers, holding earnings optimizing into business we with By Validus increased enabled capital. capital in an balance excess capital shifted and additional finally, flexibility, the our to balance RenRe strong billion legacy merging capital associated we

the and generated shareholders discussed, drivers through million Our equity our billion portfolio. acquisition Validus we retained the strong repurchases. beyond earnings, due that of profit was in XXXX, about we returning almost billion. have of Since our capital performance common previously of share Validus to while to I $XXX our extends an dividends When success $X.X capital, in X additional the to early generating time, brought we position in efficiencies however, $X.X of evaluating began

significantly $XX.X need larger positions on address billion our of result, our our ago. a shortly. ended more to we business said, plans capital. in portion than with to capital with years capital is did management our quarter scale, That we common deployed we both will X Obviously, this As capital business in increase run this greater This to us grow our detail Bob increase shareholders. a and equity. returns

our However, to that million. we are announce we are pleased $XXX repurchase $XXX million increasing authorization from share to

achieved capital scale reflects Importantly, this returns flexibility. the enhances our generating increase expect we superior greater and have we with continue to consistent,

which more renewal, now the comments on the in Moving January few to elaborate later upcoming call. a on David X will

We Ian. and rate cycles, began certain corners Irma hardening a are prior unlike in market with after catastrophe This as bonds. of -- position me, of heavily yet strong from circles beginning we Hurricane Unlike accelerated where experience influx exception book. an participate, have Hurricane we capital, of to after adequacy such the our cat prior excuse not new however, market property do the of

same In lead As increase. to U.S. keeping a rate billion. for holding conditions. estimate while increase time, opportunities environment new consequence, $XX the the retentions continues to market with remains XXXX, purchases and the the reinsurance and At disciplined XXXX, on should cat This of that limit over demand favorable. terms about will reinsurers by we course

levels. We Milton expect property, other and where similar at opportunities should assure in rates attractive that remain Helene

Moving Casualty now and our to Specialty segment.

remain Overall, these attractive. continue lines. Specialty Regarding to

annual will seek orderly opportunities our book and be an additional and to first customers. existing with focus expect on our renewal, We maintaining

lines. Casualty Regarding

of a This strong to puts set a increasingly drive of the reinsurer on. us and in tone on overview broad are market the provides the change. programs for and that position us top the participate a state renewals We positive we

share scale. on written cycle We like next customers' more than rate rates for on XX attractive XX-year think years. casualty and remain our setting much as over of the underwriting our in We means time to Casualty basis, to lines. over portfolio, believe about other which This depend business we is business is this quota current but a a important accelerate need the Casualty

regarding our share positive, similar a observations feedback and the our of Consequently, assessment on providing rate market engagement been This customers trend. our we customers are and requirements. and engaging has with

customers. this reason, will we optimistic be additional support For we to rate are and our can achieved that continue

opening comments. my concludes This

performance will for Bob who the an segment discussed, update financial provide on cover followed by our will As David, performance. Bob? quarter, our

good Thanks, Ken, $XXX a annualized billion and third on common and quarter our net $X.X everyone. operating million, Operating We on of an XX%. morning, equity with return had was was average strong income return equity and XX%. income annualized average common of

events, reported negative including During of a the net quarter, million Hurricane $XXX $XXX Helene. from from million we large impact

this producing was Fees Validus, an was metrics. $XXX XX%. As and transaction retained were noted All performed resilient XX%. adjusted net ratio platform built returns Underwriting up our million, we for accretive very to risk, of addition acquired our RenaissanceRe investment we X quarter. $XX investors. combined be will have to income has with customers' discussed, of profit while well strong income to our million, a manage the in X key that When we all drivers million, profit XX%, up of $XXX drivers

this results. You can XXXX in see clearly our

Specifically, December year-over-year. accumulated share income for X strong dividends drivers is more year-over-year XX% is X XX% last since XXXX. per value up plus Operating are book with XX% than contributions up of change per earnings share Intangible operating in months, the profit. up from our

this losses with Importantly, we in which which above in is year considering a the slightly industry fourth have Year-to-date strong occurred average, Milton, been $XXX before catastrophes. the is exceeded quarter. billion, these and Hurricane returns generating XX-year

capital management. Moving now to

we million shares. quarter, our common During $XXX the repurchased of

repurchase For scale from increase a our the of total our at price authorization larger in a of pleased year, share night, to $XXX per reinforces $XXX average $XXX good and $XXX This of commitment were we have our we being capital. stewards XX% an reflects million Last repurchased announce share. to million. million to change

capital consistent. remains Our approach to management

the then to the shareholders. priority do We do to and first we excess Our both. business to -- it is deploy expect return and into

As a Kevin and mentioned, strong in been has Validus are tremendous position. we success. capital liquidity a

our grown resilient have an consistent We and been returns that last of the profit built platform X scaled increasingly X years. strong, drivers business, generating has over the

continue attractive plus repurchasing while result, book share accumulated tangible shares per growing value expect to a As valuations. at dividends, our actively our we

starting first our underwriting, our premiums with results up up net now where and profit gross third Turning XX% written were written premiums XX%. to and were quarter

where property quarter. to risk-adjusted growing earlier, specialty adjusted attractive able organically continue combined grow in catastrophe lines, most the to been receiving continue ratio And have an we with mentioned We active both profitably as we're returns. an catastrophe of and in XX%

segment Property our to catastrophe. starting now with and Moving Property

by third -- for Net XXX% first the up grew reinstatement which The of of reinstatement up quiet due our written increased opportunities, million, XXX% or renewals. were new In driven tend to than net by quarter, growth primarily were timing is demand quarter faster relatively Catastrophe premiums customers was the contracts, $XXX and without without The year. the ceded gross premiums by premiums. XXX% million, premiums accept $XXX written XX% written gross premiums. to written in premiums Validus. the from half or

the combined was of including point loss and hailstorms development year prior quarter. catastrophe ratio XX%. of as property events, current Calgary. result, and especially reflected year QX current Overall, is XX% strong favorable activity our Barrel, the catastrophe impact This well in The of from accident include ratio the given points events. year loss from percentage This results as XX on Debbie Hurricane large a XX% adjusted Helene, a

the portfolio. action Overall, up we Moving to -- $XXX were about earned we written by quarter, ratio addition an where net up property next million. quarter expect were the other XX%. written in well, other is combined to Validus and net to property, XX% the Net premiums due earned premiums and premiums be other of by $XXX gross now premiums of the adjusted the XX% million performing were property book reported

a points impact development was current in reported favorable ratio XX%, property, losses. loss point year The from primarily XX other the XX percentage attritional QX We book. percentage large included in which of accident

expect forward, we XXs. to attritional the ratio Looking continue low an in loss

Milton a an currently in billion. made on Florida his Milton based Milton so comments approximately few a a quarter in Hurricane Miton. net industry be impact on to fourth on David negative This event. this million. discuss estimate fourth we the X, $XX loss of detail in Finally, is October $XXX comments, will in estimate quarter of will but more landfall related

Casualty net respectively. now were XX% XX%, Specialty, and and to Moving where and premiums up gross written

in the growth renewing portfolio. relates to previous quarters, primarily this Validus As

billion, and up $X.X We of expect to have and opportunities. portfolio the retained also net XX%, quarter we were Specialty the billion. in Casualty fourth premiums $X.X while earned be Specialty Net the premiums organic earned capturing about majority

we underwriting and reported in Casualty small loss quarter, This Specialty. a

was This this integration-related the reflected acquisition purchase ratio. which point about costs, this percentage Specialty combined million combined reminder, a on As X.X ratio accounting. impacted was purchase XX.X% of The which had of related to by quarter. are point adjusted a adversely $XX accounting and a Casualty adjustments, not

Specialty on trends being impacted notably eye Kevin mentioned, liability. general and close loss we been As inflation, have most keeping a by social lines

we in move to in XXXX, on combined average. ratio adjusted XXs the As mid- forward, upper expect we report an to

Our the year loss increasing long-standing trends in We're approach trend recognize accident and process our reserving to be these prudent to ahead our insights will early. current of into proactively reflecting increase stay reflected the ratio. is

On Bridge million impacts, Baltimore running from our as well After year. as is point. Specialty, these final impacted profit. last $XXX and million. One $XX business quarter. Casualty income million collapse in for purchase Together, a by Specialty we adjusting $XX reported and was the better adversely a adjustments these million totaled than underwriting first the underwriting for of year-to-date This Casualty accounting $XXX

income at XX%; for up this impact and fee to in where out up of fees quarters, million, income the This million, Performance growth fees largely included $XX $XX quarter. were million. our the $XX Fontana. favorable in have X Management development Capital fee last due Looking level to been was DaVinci business, the fees management XX%. and were Partners

Looking the be management quarter, fees same next expect level. ahead we around the to to

Hurricane We down Miton. the to be given expect significantly of performance impact fees

net investment quarter. from significant million, by, and Moving the year quarter driven income ago. retained X% up This a mark-to-market rates; retained gain second TWFG, from million We gain retained largely $XXX investment which of $XXX IPO now million in of and to $XXX a second, portfolio in was first, investments, was the reported where XXXX. XX% gains held since by decreased driven have $XXX maturity our million portfolio, a our related strategic successful to in the interest fixed we

share. gains $X.XX maturity unrealized million $XXX per retained now our Overall, or in investments are fixed

back As we a some $XXX mark-to-market reported unrealized in portfolio of so million, reminder, pulling our the quarter gains of an loss the quarter, reflect par. last investment to

result retained interest a quarter. maturity of yield As X.X% decreased to declining X.X% rates, from our last

income ended. they duration the quarter flat next we Consequently, up net quarter We around slightly Interest have to increased million. expect are retained years. X.X will rates $XXX investment from now were when where remain

anticipated less next given to relatively As duration and growth, of we to shorter consistent look forward Consequently, should our year. portfolios. cuts to expect level we and continue a investment positioning rate we portfolio sensitive be asset providing XXXX, our income

expenses. briefly ratio expense was X.X%, to flat which is compared Turning a year to operating The about ago.

ratio forward, the over Corporate stay continue we to the acquisition. support are expense $X operating our from tapering including been have will were expect several Going expenses million business million, $XX around and years. we level transaction-related last the These invest Validus this excluded growth to operating income. from in as the off expenses

tax. to turning finally, And

tax in gains third investment taxable in our increase in the primarily quarter, income were relates million expenses to $XXX Our jurisdictions. this an

minimum tax implementing income forward, a XX% in will to corporate global the response Going in government OECD rules. the tax XXXX, be Bermuda

of XXXX. for start QX will We this in beginning tax accruing

were quarter of across robust to conclusion, another strong with X all In drivers performance pleased we deliver profit.

a confident continue generate that for are our to will at we strong forward, we scale, results larger Going shareholders.

we result, plus dividends, book to per while continue accumulated our valuations. growing a at value expect tangible attractive our As shares share repurchasing

turn with to that, David. I'll the And over call now

of Thanks, for in renewals we January ahead in ago good are excited about and XXXX, deep months the preparation Bob, morning, X than X the With less and everyone. are opportunities us.

customers and the deeper a entering more Validus overwhelmingly season supported larger are renewal and and partnerships. with Our integration, portfolio have diversified been we the

and Our increased on serving into our focus January capacity is leading at X customers scale. deploying

is Our very portfolio underwriting attractive.

at deploy the above for will to are portfolio rates We look where adequacy. retain or combined and opportunities capacity

a process. is management portfolio continuous discussed, have we As

where where nimble and is reduce and participations deeply are or team attractive we increase and met. are classes our on can experienced, returns hurdles deals most Our our not

cannot. market large confidence several with to of of strong They market certainty are look gross-to-net execution growing know and As customers. relationships, and the we where is others balance customer property across risk we of trusted and partner offer current their around result to appetite, risk position grow direct strong that the flexibility and the in our clear is them concerns sheets losses casualty our we the trends, in forward, Especially we consistency portfolios strategy. across manage are a help contemplating our This cycles. deep environment, a

to events. that role discussion in deeper are of active has impacted everyone I a our recover is Property by paying the to proud claims aid an efforts. to segment. now communities Shifting of quickly want we and for quarter these This catastrophes, been helping RenaissanceRe to play in express the and these sympathies we

to was a Industry and a Diving deeper as into most the losses are billions. events of landfall storm the the quarter. and making Florida significant of likely category for the Tennessee, to life. devastating heavy rain significant Georgia hurricane the Carolinas, Hurricane the The causing in flooding for pushed large Helene in Helene double-digit be low event, Panhandle. loss

relatively programs. and U.S. In impact addition did as Debbie Francine the hurricanes landfall Helene, to reinsurance hurricanes and significantly not in Barrel, made small all

in in year, driven and making levels the at of record Finally, on Toronto Hurricane landfall significant closely a as West south floods by followed industry of fourth Tampa Milton the In the Calgary this hailstorm approximately from quarter, the on of in in hurricane. heels to Helene, Canada quarter X just Category loss a Coast Florida Montreal. $X billion

Category hospital area low the conditions, As outer increasingly its several encountered Close approached to storm which tornadoes category to strong bands X. across wide landfall, Milton X a Florida, state. storm the a of a from the spawned weakened

in While than they originally forecast. the made from would much been Tampa they as Milton store will industry losses significant, are have be if landfall less

while providing for our put platform balance of capacity diversified and to drivers to producing and portfolio, Our these position managed strong a us shareholders. still customers absorb in and efficient differentiated losses, our sheets returns of profit, owned X

Helene and RenaissanceRe's core reinsurance nationwide their to will against global large protect protect insurance relative purpose companies lower The recoveries Milton aspect large of smaller of retention size or These this to is capital. events like companies. trigger the their to our customers are of events storms carriers, size, for storms carry and

rather Our protection quarter, earnings an for portfolio this sheet our active its each than of protection appropriate providing cat at resilience its balance and property demonstrated customers. value in level

XXXX, reinsurance our customers dynamic persist supporting this healthy protection and into expect We the market need. a to consistent

market to come early attractive Helene before and demand placements. market. Milton, increase Hurricanes January Rates remain too we additional renewal. predict outcome is Even will with to share were expecting It on while the of we and grow X to to favorable, to our existing customers, continue opportunities of capitalizing

comments specific a properties. other to now few Moving on

the the events another also While loss a of with level significant quarter development. impacted other profitable favorable delivered we of quarter properties,

property business at-driven book. As a other we E&S through the accessed reminder,

increased the most are expect ready recent deploy attractive space opportunities business. we to With and capital the loss in in this activity,

Now In we position and our we the construct provides with Specialty. business and stronger This moving enhancing our the successfully target. materially on to brought to options leadership portfolio, more XXXX, Casualty market portfolio. Validus areas in to on us access

First foremost, underwriter. to with a Validus. recognize, book the that amount best brings have of Specialty important It to income underwriting fee our and be however, increased we income, which of returns and is both Casualty significant line vision investment in optimize aim since also to and the

book Property contribute value book. In as these earnings of income our streams growth as to combination, meaningfully diversification and well

market position us we which profitability means the trends with see and market, whole that Our insights also leadership provides drivers. on unique

engaging future we market liability trend. discussed the general trends better price last and with we to As understand tracking closely quarter, have and accurately been

plan this claim line, driven journeys. for by Inflation aggressive increasing in severity an and have sympathetic been and

reducing of processes, insurers limits loss refine approach to needs we remain accelerate not companies and need But to stay believe their levers. the X and believe the we increases. important industry underwriting ahead that also handling claims to These last improve trend, that increasing continue have rates. by to evolve rate social In stay ahead. to While is inflation years, responded new,

to process. to To program. enables place throughout this, renewal working deploy us actively with and right data and support our price we This each the insights in for are capture share right customers the charge improve the capacity

are customers, is in our most book. partner continue goal meet all our to on programs we prepared general to liability our those requirements, our of notably not While do reduce with that to

returns over steps cat the will disciplined sustainable more in improve believe We an taking rates, short strong and that to term increase portfolio underwriting, that practice we help a maintains create attractive and data market the cycle. are

Outside these than ever credit, opportunities in our to to stronger due of leadership and portfolios see continue specialty are Casualty, and we larger position.

to to business continue aviation, have access other and We credit and the best energy, as marine, lines, find such classes mortgage attractive.

expect We orderly book and an our maintain will focus to grow and renewal, our where possible. January X be

make also folio our record We reduced have and capacity where of exposure portfolio, marine efficient or in our use grown in shape ceded we and particularly gross to our cyber, to loss. aggregate energy

I'll back that, with to And turn it Kevin.

reported strong We what of a we net year. drivers closing, in investment income, quarter manageable of across far losses. David. underwriting, delivered catastrophe superior with Thanks, profit, has and fees In a been level excellent results an X so our

with We synergies and have now have increased a XX%. repurchase result, we Validus, authorization capital as significant unlocked by share our

attractive, future client Consequently, you. our and excited proactive we for Thank be about the a to performance are client Casualty, shareholders. approach. by expect I could We remain market for potential not in Property value ability and create to taking more

questions. that, it we'll with for up open And

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

first is on the the side. X/X My about cap question renewals

right, meet ROEs. to generating about excess the and supply you're that pointed, have additional record capital your You guys you're talking

probably renewals? out So of decline all during put environment, you isn't rate the that shakes to that or kind flat together, when it where an

So for Elyse, you thank question. the

demand. supply Just and taking pure

continuously coming seen believe to in billion also be be market. or so there'll 'XX. $XX introduced capacity capacity We We've the new

continue That will stabilize We expect to the help 'XX. pricing additional that in environment. demand

I So the when market before, we fair rates And said new beginning. the property level which market, that's believe way think we the trade, the for will are at in, go to reset in and in as the cat we'll it we've adequate approach.

persist think the that retention of that place I important, level Equally in are will -- likely as slips the well. we with

think the around reset financial they'll any think, will at. retentions, at market, level as be, I rates I we're will continue. that So roughly with the trade And

a to And you're question. I then my you So it's guess follow-up start said that right, high to combined to this right? going is X-part on booking mid- ratio, adjusted a casualty, kind higher year. XXs guys next specialty of

up, have, to If you the is if why you're reserves guess, in higher reflected for booking your sit year? segment? today that responding started this inflation, you in trends And going are wouldn't social it go think where that I to

we was whether Elyse. second. we're to make. for it's of couple it's mid-XXs basis. talked did referring and year grew we're our -- combined One, trend the and have past, pointed that forward-looking that's we've comments into out we we are years, responding trend, but we trends we And ratio. years. reflect turn in meaning for in driver booking in mix X around basis. that grow that in through to, on the and it the the at And forward-looking Two, at and I'll challenging historical question, last protections portfolio acquisitions, the Shaping my Thanks about or get him a years. about that changing now how to it did have it how it, a increasing David that we're didn't a later back in But that current. accident back shaped it. in that We've on the we we of our that the it it's I been in a on. those trends really we the over talked seeing that to in And going on portfolio more current points the looking we've

claims data to be support I side. the case data, normally a good Elyse, settlement been on reserving the trend advance underwriting We've on getting in seeing what about what taking the issue Insurers side. part years, that insurer and this can by action. There's the known renewal, following loss annual submission in talk we've wouldn't market. of this like patterns, we're early, But awareness it's several is can David. for process. of more done data we individual engaging are

our using have customers. So with that we're feedback to

They're right action. thing. taking getting a is Trend handling rate. the improving processes. They're claims They're cumulative

early loss those So the trend and all over place actions it's those next result to will the all actions. for know be year, net-net cumulative taking of too

it's prudent the a look to do it to a issue. year, is thing than issue to we're So where at next going so more XXXX but current

today question from next Our come at will Kinar Jefferies. Yaron

last better itself that maybe to one, question. on the need following company also seeing why First we're the understand up or I reserves company want could reflected cedents in the of to whether for prior kind the ultimately reflect the results? the wouldn't the revisit issues loss of be trend emerging of for years, that some potential

Yes, the this David. question. is Thanks for

reserves the the we've the XX actions years. of taken what And goes think into the effect is that. over current a cumulative last lot I all there's to

into also betters, we the years, areas portfolio, starts active lot extreme more like up net and risk very so inflation we in manage different the and a constructed reinsurance first the way how underwriting auto. most recent of all, just, book the see more in We've the a the it avoiding ways. good you So exposure to our and have of of to been commercial with as scaling

from independent our process, reserving what book. clients the is process our as far As

have when down rates rate the much reserves improving the but that now. we were of itself XXXX our is rapidly, manifests So picks we're more adjust would [ as one implied didn't we when facing of of into we how as resilient like be the our effect having inflation are ], we that should. has That examples grew XXXX,

rather how XXXX is get our current pool. do on rate the differentiate in and between right portfolios the reserve So we more focus than

was Got million Because then my buyback deal authorization, want this last already on benefits the And coming expectation is what the question, correct, from my changed Validus the second the $XXX when about XX% to set recollection you've I the if understand of in increase. wanted talked I authorization touch quarter. to quarter. it. just the

in takes? it what's to Is these as were So out puts not very active? it expect season we that and changed that X [indiscernible] active other Or the months? turned there be

prepared did Yes. Both the is last scale, is that Ken have authorization was our The increase we in XXXX. we that. and in I but really comments, back in to about put talked our common share time have theme

quite lot And a ago. time long changed. was so that A has

volume a we the see things it size, that simple You to prudent advantage thought of be thing And as number terms answer start was of to what take to market. in one. see change That's attractive in to just to of the do a opportunities. able we

happened the the comments, of And produced balance Bob, which your able that to other sheet, the RenRe we're to consolidate adding that rolled the the piece up thing is balance holding onto company. to liquidity Validus sheets final

been liquidity and the good stewards shareholders. achieve return deploy the market and capital that and So flexibility Validus our be in the is reflects scale the fact flexibility first and we're the really nothing's changed timing the going to capital to really the realized. change reflection to has from in the transaction integration way going that to then a the expected This manage of capital of -- position complete is from we're we where and the and into

question next the Autonomous come Our with will Tunis of from line Research. Ryan

I there's equity undeployed and increased guess of following capital. up on said last question. ] is billion [ the that $X portion of you a Kevin, common

minus get billion Just at billion. much it excess trying and $XXX this capital Validus business It's combined equity here not $XX.X Is million? does $XX.X like a need this a Or minus juncture? to feel the lot how of is RenRe for significant?

be that capital excess are undeployed an capital. think balance we'll I to of provides So to specifically the we above-average undeployed of the capital leverage buffer us opportunities that some for I flexibility would sheet think also do into the amount we say don't generally have XXXX. financial markets. What disclose the we company the it that We loss. deploy flexibility in a We a with provides with have. It in should is into period manage there market

shareholders. to we'll We to have return also equally believe strong opportunities

then in guess guess And the it's some X/X more But XQ just here are renewal, I it. active then on hurricanes Got Europe. I U.S.-centric. loss the

So be more like, And are elevated the guess reason momentum I around was might X/X is think more we be a X/X? affect conversation to bit might what first from But up part, in June extent the pulling to evident Milton there thinking the might the in X. a little I some renewal? there Europe of in that pick going to losses

David. one. Ryan, this is with I'll that start

you in mentioned, loss been activity that's the we're Europe. losses has there North that seeing Europe, America like and in So attritional of in in bucket

-- So it impact retentions how around had the the the market. is and stability of keeping reinsurance to does that important and conversation

we So and deploy expecting the market levels potentially stable we and post U.S. now. where we're we structures, And both in price sides, America capital see will stable Europe, position And our like and is say, with around Europe, opportunities around at. that see retention, Validus in the both North conversation with price. we're trade are we the to

to event. is is thing final Florida I'd The a add Dave's comments Yes. Milton

are in loss a that and of around if more the there loss-specific say be market's also fixture rate X/X. catalyst really I 'XX. market. are sustaining believe largely no only the will to with discussions, loss for what longer and would those bit effective discussions covers happened I So being And matured that the be the that

persist. everybody today's and I that recognizes today's prices structures think will

America. the Bank line at will Shanker come from of Joshua question Next of

repurchase of authorization have $XXX million. you larger this share So guys

the and months heading at 'XX has to so adequate year know you're in the $X.X income are you been burn did past of position guys the going $X.X what's a share more significantly operating be the that think Or don't going that -- We you would foresee? you ago. have be the quickly Is billion. billion over income amount few capital, to earnings, as ahead? has but you future for net higher rate you year repurchase to Over months, a next about capital XX than through into generating been

to my This address is Good comments. Josh. in tried Bob. Thanks, that question. I prepared

Kevin significantly. described capital. You operating in efficiency appropriately the have drivers All as through capital have generating generate excess we what for of X-X-X out that point Validus, been income. contributing excess profit on Also been X

prepared to capital. I the business do So had next David my into time. same We'll what have deploying spoken regarding opportunities about at have had year, as new which to option at the and we the the to as be do we the demand. the we in talked -- Kevin renewals both comments, option capital well have And

well in attractive that But from And as our each to valuations. look part is we $XXX $XXX about. authorization million of light, quarter. increased scale Kevin be capital at million the returning we'll at that talked same The

time, we in every -- back So if you reapprove quarter. we approve go

tapped we whether we it of into every So all that or none we're it, of at use it, look quarter.

it's quarterly. an it's annual, So not

dividend, to And promise it's a the at make I once How of giving shareholders? establish special a quarterly not to sense, maybe you capital dividends RenRe as future. current perpetuity that valuation? common in realize back approach that the a Do would way

I think question. it's a great

as it I about capital. protocol think deploy managing first I business. Obviously, for we the times, to first, way our possible mentioned several at us into is to think every look

preferred share would see manage term tangible a methodology most in over calculation, If different -- we mechanisms at Our different through to to that book shares. per is our the capital. was the through value as we certainly their long look accretive repurchasing what share own

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Meyer Shields at KBW.

Great.

reserve Specialty, Casualty I'm Casualty just or question significant morning variation So is flat getting a accident lot whether movements by by of and versus of year one is Specialty? this a sort in the there

little my prepared But prior down talked I acquisition to accounting, it into purchase ratio specifically, more when the I Casualty. profitability of the and regarding year about it's overall bit amortized in comes comments that mean a reserves.

So actually million. by million, that affected was about $XX $XX

So more much you've when number and by a what or it's becomes million again, you accounting for distorting But negate $X seen the the consistent purchase million actually that's $XX that, larger $XX about millio? that before.

which is look comments grew at reserve have, and to Bob's I'd thing we we if add better years. the to substantially are profile pretty 'XX in you forward, seen One that

have of and balance also We nice a Casualty Specialty.

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well. reserve good that our think we reflect So it's of pool better better have in years, I what business in a the as we're only not balance than industry would

Okay. That's helpful.

ask not hard be on for casualty loss so easy it's Second focus excess it your but actions? how this, me your of you're question, rate to to and so clients' would set lines, dependent on

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are that very they're understand So it's rate. them do we understand engage customers and that claims, they're how to and now, they're strong we and XXXX. in getting those And to how conversations, all actions positive important with making expect continue settling

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and work. their So harvesting pushing the of they are rates, primary through we're benefit

quota compared excess The can second to increased impaired there's been trend by you with an thing more is that trend, that, on severity. of frequency be Being share.

this another support time. again, quota reason market So at share the it's to

Zaremski BMO. Mike at

you've guide you're data guidance that within overall Specialty remarks, to just market terms casualty in flavor reinsurance offered the in also And need point on contemplating in talk to marketplace? any the a XXs. so at in of least the improvement did, the Kevin, higher of plans pricing you especially color us commissions rates. more And of your the moving prepared about rate. for you Back for far, just the we give see XQ, ceding in mid- whether Casualty to and Can upper

if reserve are guide, charges you on contemplating that you're too, your on any contemplating in moving back book, curious, So materially? the especially higher since rate you're market if not taking

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it. Got

in sticking on has casualty, on this but questions And Okay. investors. know question I and still getting to many ways, from been asked incoming I different it

there run higher and we are terms, it more you though still charge, because didn't line? a could cushion -- layman's I is that is reason books take reserve -- say -- you a read even seeing than it's conservatively you materially trend in say So can the

Yes.

and very there the business, on And than we process the reduce some follow a lend some that's Significantly. of XXXX, some we're and was kind years XXXX, of our we didn't those higher cases, in remarks reserving that improvement continue just might I'll about the reference market. significant process. of earlier picks part booking So my in the that, of in

curves other And recognize than way is we curves we that not our reserving we the up already, XXXX, slowing reacted see thing might have before but were we that development the make news. the until have years, are sure faster have that's if process. that wait we approach curves, XXXX The development we positive to we the good

Brian at We'll hear UBS. from Meredith

here questions Two for you.

hopefully First Is of one. is the you Tokyo that how provide left one, development? the development adverse simple in a us reserve Could much just helping Marine kind of some color cover? some

partner. pay that's still last the to don't remains part We're disclose as that portfolio. specific it of have to a Tokyo our We delighted cover. transactions. been and has There's -- great And we available book unpaid. still

question, other your curious, the XXXX, increase? And of capacity property we'll You see into we is think Helpful. anticipation availability retro just I'm as look capacity? any of Great. kind retro what

in the call now there discovery right price because That's a market. isn't tough of a ton

build have slightly help at shaping. our will would really in I purchase so we a a I far will perspective, performance to with think portfolios. say, the capacity expectation sign impact we with That's belief the to We'll limited we retro events have market also least the at market generally an will expectation retro this 'XX, retro From be shape the that the as this will year. have our stable. it will what retro that that from to happened in have purchase available. but our good less likely point, we use we market that that be

And now from David Motemaden. Evercore we ISI's will hear

a had question. I

mentioned 'XX? how How assumed just guys you guys compared at picks accident casualty year hard to years. your I you've think assumed? that wondering you a during few times, year I 'XX, loss have I'm look much haven't the or were have improvement if 'XX accident improvement So assumed in you improvement as ratio much much market XXXX to

Let the a talk for here bit it, call. initial information of have us we think little me our we will then way process reserving that pick about develop not about What we set for and we I'm and because curve. is kind do the we sure the a that with loss

-- said we observation develops, observations the are the initial know what and set is to believe we we amend to said for we reflecting our curve primaries, expected it the sure independent make curve we're the it we trend. when our higher. We As

our news, will develop very means Additionally, recognize which curves we slow to good slowly. are

our balance best a estimate. in our healthy I of reserves, believe when look they're state they reflect the at I very and

commercial is do casualty I which of thing is auto. is for to of other conversation The to back go our a the That want part reserve around an base. insignificant lot

important for things about taking. talking thing one is year second we that for through spent we're the rate, we've the is need The on talk risk for that's when the casualty. coming need of And for are we lot the about about margin a talking the rate time accident of

make want margin margin we're we portfolio, we the sure a because and XX that that for that getting if a over feel margin the we we at good is over the years, as not So enhance target looking we're position the in XX-year. to today but we're this would

cautious margin. which a by process, view reflects being in which book casualty and emerges the of a harvesting enjoying balance rate, I good position benefit a enhance reflecting slow. shape. got great that where a difficult will uncertainty we've in market, casualty help of shared uncertainty we're the we and then is additional that are So believe the And in

And up process? this picks in far it. is something addition those in guys it Got quarter? conversations guys you ceding in we and expect quarter. how you've that information from should then guess with you I definitely to stepped your gathering engagement are along has this And sounds where like guess to your the in the I happened casualty that reflect what gleaned reserves what we

we're XX/X, business, And started earlier able engage we the market, as we this Yes. they come we're one where the not the with and submissions see and needed that be weren't positive part we to much X/X. them that, what and in the and that a as -- normal data, and XX/X, of possible. trends where could clients aligned see we the just brokers than to in know price I in whole company's the we're let to Very accurate aggregate directly were conversations. XX/X, we lot on Because data. so would seeing help say,

the make will and keep of you the focus. the area into together besides to right getting also the the adjustments, we're And right commission right right the create results XXXX. right rate, decisions see first we'll the data, portfolio. the we the on Price just select of into outcome work claim practices order those updated And trends to and price continue our evolving, all of but settlement ceding more that's us of in the focus underwriting to risk information for about And be future. level information which as

or back our sir, any final you, today. to the to question was audience that Mr. I'm from O'Donnell, closing turn remarks. for And it additional happy

Thank and to call. you, in forward X-month everybody, joining We're looking Thanks for to February. talking the again. you renewal forward looking today's to

RenaissanceRe the and Quarter your Call a concludes Please time, line this Webcast. and wonderful XXXX gentlemen, Third have this Earnings day. Ladies disconnect at