Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 24, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-14428 | |
Entity Registrant Name | RENAISSANCERE HOLDINGS LTD | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0141974 | |
Entity Address, Address Line One | Renaissance House | |
Entity Address, Address Line Two | 12 Crow Lane | |
Entity Address, City or Town | Pembroke | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM 19 | |
City Area Code | 441 | |
Local Phone Number | 295-4513 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 51,181,534 | |
Entity Central Index Key | 0000913144 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Shares, Par Value $1.00 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, Par Value $1.00 per share | |
Trading Symbol | RNR | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share | |
Trading Symbol | RNR PRF | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a Series G 4.20% Preference Share, Par Value $1.00 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a Series G 4.20% Preference Share, Par Value $1.00 per share | |
Trading Symbol | RNR PRG | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Fixed maturity investments trading, at fair value – amortized cost $16,398,682 at June 30, 2023 (December 31, 2022 – $15,038,551) | $ 15,888,564 | $ 14,351,402 |
Short term investments, at fair value - amortized cost $6,374,957 at June 30, 2023 (December 31, 2022 - $4,671,581) | 6,373,969 | 4,669,272 |
Equity investments, at fair value | 93,058 | 625,058 |
Other investments, at fair value | 3,091,686 | 2,494,954 |
Investments in other ventures, under equity method | 89,505 | 79,750 |
Total investments | 25,536,782 | 22,220,436 |
Cash and cash equivalents | 943,935 | 1,194,339 |
Premiums receivable | 6,490,886 | 5,139,471 |
Prepaid reinsurance premiums | 1,187,177 | 1,021,412 |
Reinsurance recoverable | 4,689,351 | 4,710,925 |
Accrued investment income | 147,824 | 121,501 |
Deferred acquisition costs | 1,300,992 | 1,171,738 |
Receivable for investments sold | 508,887 | 350,526 |
Other assets | 358,863 | 384,702 |
Goodwill and other intangible assets | 235,218 | 237,828 |
Total assets | 41,399,915 | 36,552,878 |
Liabilities | ||
Reserve for claims and claim expenses | 16,138,128 | 15,892,573 |
Unearned premiums | 5,717,302 | 4,559,107 |
Debt | 1,882,101 | 1,170,442 |
Reinsurance balances payable | 3,780,410 | 3,928,281 |
Payable for investments purchased | 547,974 | 493,776 |
Other liabilities | 254,925 | 648,036 |
Total liabilities | 28,320,840 | 26,692,215 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 5,676,262 | 4,535,389 |
Shareholders’ Equity | ||
Preference shares: $1.00 par value – 30,000 shares issued and outstanding at June 30, 2023 (December 31, 2022 – 30,000) | 750,000 | 750,000 |
Common shares: $1.00 par value – 51,182,221 shares issued and outstanding at June 30, 2023 (December 31, 2022 – 43,717,836) | 51,182 | 43,718 |
Additional paid-in capital | 1,825,215 | 475,647 |
Accumulated other comprehensive income (loss) | (14,050) | (15,462) |
Retained earnings | 4,790,466 | 4,071,371 |
Total shareholders’ equity attributable to RenaissanceRe | 7,402,813 | 5,325,274 |
Total liabilities, noncontrolling interests and shareholders’ equity | $ 41,399,915 | $ 36,552,878 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturity investments trading, amortized cost | $ 16,398,682 | $ 15,038,551 |
Short-term investments, amortized cost | $ 6,374,957 | $ 4,671,581 |
Preference shares, par value (in dollars per share) | $ 1 | $ 1 |
Preference shares, shares issued (in shares) | 30,000 | 30,000 |
Preference shares, shares outstanding (in shares) | 30,000 | 30,000 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares issued (in shares) | 51,182,221 | 43,717,836 |
Common shares, shares outstanding (in shares) | 51,182,221 | 43,717,836 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Gross premiums written | $ 2,651,621 | $ 2,464,639 | $ 5,441,882 | $ 5,407,603 |
Net premiums written | 2,195,803 | 1,863,616 | 4,459,506 | 4,028,833 |
Decrease (increase) in unearned premiums | (410,541) | (407,233) | (993,694) | (1,086,025) |
Net premiums earned | 1,785,262 | 1,456,383 | 3,465,812 | 2,942,808 |
Net investment income | 292,662 | 107,211 | 547,040 | 190,902 |
Net foreign exchange gains (losses) | (13,488) | (50,821) | (27,991) | (66,307) |
Equity in earnings (losses) of other ventures | 7,700 | 7,383 | 17,230 | 993 |
Other income (loss) | 3,876 | 923 | (430) | 2,116 |
Net realized and unrealized gains (losses) on investments | (222,781) | (654,107) | 56,670 | (1,327,124) |
Total revenues | 1,853,231 | 866,972 | 4,058,331 | 1,743,388 |
Expenses | ||||
Net claims and claim expenses incurred | 931,211 | 706,239 | 1,732,411 | 1,547,972 |
Acquisition expenses | 422,545 | 361,238 | 854,802 | 737,745 |
Operational expenses | 80,491 | 72,520 | 157,965 | 140,427 |
Corporate expenses | 23,371 | 12,352 | 36,214 | 24,854 |
Interest expense | 14,895 | 11,895 | 27,029 | 23,850 |
Total expenses | 1,472,513 | 1,164,244 | 2,808,421 | 2,474,848 |
Income (loss) before taxes | 380,718 | (297,272) | 1,249,910 | (731,460) |
Income tax benefit (expense) | (5,942) | 30,534 | (34,844) | 67,241 |
Net income (loss) | 374,776 | (266,738) | 1,215,066 | (664,219) |
Net (income) loss attributable to redeemable noncontrolling interests | (174,907) | (49,331) | (442,291) | (37,419) |
Net income (loss) attributable to RenaissanceRe | 199,869 | (316,069) | 772,775 | (701,638) |
Dividends on preference shares | (8,844) | (8,844) | (17,688) | (17,688) |
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ 191,025 | $ (324,913) | $ 755,087 | $ (719,326) |
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ 4.10 | $ (7.53) | $ 16.75 | $ (16.64) |
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | 4.09 | (7.53) | 16.71 | (16.64) |
Dividends per common share (in dollars per share) | $ 0.38 | $ 0.37 | $ 0.76 | $ 0.74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Comprehensive income (loss) | ||||
Net income (loss) | $ 374,776 | $ (266,738) | $ 1,215,066 | $ (664,219) |
Change in net unrealized gains (losses) on investments, net of tax | 390 | (3,251) | 1,308 | (2,417) |
Foreign currency translation adjustments, net of tax | 398 | 917 | 104 | (1,842) |
Comprehensive income (loss) | 375,564 | (269,072) | 1,216,478 | (668,478) |
Net (income) loss attributable to redeemable noncontrolling interests | (174,907) | (49,331) | (442,291) | (37,419) |
Comprehensive (income) loss attributable to redeemable noncontrolling interests | (174,907) | (49,331) | (442,291) | (37,419) |
Comprehensive income (loss) attributable to RenaissanceRe | $ 200,657 | $ (318,403) | $ 774,187 | $ (705,897) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preference shares | Common shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings |
Beginning balance at Dec. 31, 2021 | $ 750,000 | $ 44,445 | $ 608,121 | $ (10,909) | $ 5,232,624 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares | (875) | (136,656) | ||||
Issuance of restricted stock awards | 311 | 11,609 | ||||
Change in redeemable noncontrolling interests | (3,989) | |||||
Change in net unrealized gains (loss) on investments, net of tax | $ (2,417) | (2,417) | ||||
Foreign currency translation adjustments, net of tax | (1,842) | (1,842) | ||||
Net income (loss) | (664,219) | |||||
Net (income) loss attributable to redeemable noncontrolling interests | (37,419) | (37,419) | ||||
Dividends on common shares | (32,400) | (32,437) | ||||
Dividends on preference shares | (17,688) | (17,688) | ||||
Ending balance at Jun. 30, 2022 | 5,738,659 | 750,000 | 43,881 | 479,085 | (15,168) | 4,480,861 |
Beginning balance at Mar. 31, 2022 | 750,000 | 44,193 | 513,631 | (12,834) | 4,821,970 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares | (298) | (43,799) | ||||
Issuance of restricted stock awards | (14) | 12,379 | ||||
Change in redeemable noncontrolling interests | (3,126) | |||||
Change in net unrealized gains (loss) on investments, net of tax | (3,251) | (3,251) | ||||
Foreign currency translation adjustments, net of tax | 917 | 917 | ||||
Net income (loss) | (266,738) | |||||
Net (income) loss attributable to redeemable noncontrolling interests | (49,331) | (49,331) | ||||
Dividends on common shares | (16,196) | |||||
Dividends on preference shares | (8,844) | (8,844) | ||||
Ending balance at Jun. 30, 2022 | 5,738,659 | 750,000 | 43,881 | 479,085 | (15,168) | 4,480,861 |
Beginning balance at Dec. 31, 2022 | 5,325,274 | 750,000 | 43,718 | 475,647 | (15,462) | 4,071,371 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares | 7,245 | 1,344,326 | ||||
Issuance of restricted stock awards | 219 | 7,024 | ||||
Change in redeemable noncontrolling interests | (1,782) | |||||
Change in net unrealized gains (loss) on investments, net of tax | 1,308 | 1,308 | ||||
Foreign currency translation adjustments, net of tax | 104 | 104 | ||||
Net income (loss) | 1,215,066 | |||||
Net (income) loss attributable to redeemable noncontrolling interests | (442,291) | (442,291) | ||||
Dividends on common shares | (36,000) | (35,992) | ||||
Dividends on preference shares | (17,688) | (17,688) | ||||
Ending balance at Jun. 30, 2023 | 7,402,813 | 750,000 | 51,182 | 1,825,215 | (14,050) | 4,790,466 |
Beginning balance at Mar. 31, 2023 | 750,000 | 43,932 | 467,623 | (14,838) | 4,618,818 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares | 7,245 | 1,344,326 | ||||
Issuance of restricted stock awards | 5 | 13,942 | ||||
Change in redeemable noncontrolling interests | (676) | |||||
Change in net unrealized gains (loss) on investments, net of tax | 390 | 390 | ||||
Foreign currency translation adjustments, net of tax | 398 | 398 | ||||
Net income (loss) | 374,776 | |||||
Net (income) loss attributable to redeemable noncontrolling interests | (174,907) | (174,907) | ||||
Dividends on common shares | (19,377) | |||||
Dividends on preference shares | (8,844) | (8,844) | ||||
Ending balance at Jun. 30, 2023 | $ 7,402,813 | $ 750,000 | $ 51,182 | $ 1,825,215 | $ (14,050) | $ 4,790,466 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows provided by (used in) operating activities | ||
Net income (loss) | $ 1,215,066 | $ (664,219) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Amortization, accretion and depreciation | (73,232) | 9,583 |
Equity in undistributed (earnings) losses of other ventures | 2,831 | 13,961 |
Net realized and unrealized (gains) losses on investments | (109,559) | 1,220,758 |
Change in: | ||
Premiums receivable | (1,351,415) | (1,626,675) |
Prepaid reinsurance premiums | (165,765) | (499,843) |
Reinsurance recoverable | 21,574 | 62,210 |
Deferred acquisition costs | (129,254) | (240,266) |
Reserve for claims and claim expenses | 245,555 | 148,176 |
Unearned premiums | 1,158,195 | 1,586,004 |
Reinsurance balances payable | (147,871) | 524,871 |
Other | (39,451) | (265,391) |
Net cash provided by (used in) operating activities | 626,674 | 269,169 |
Cash flows provided by (used in) investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 8,149,227 | 10,527,219 |
Purchases of fixed maturity investments trading | (9,719,075) | (11,743,171) |
Net sales (purchases) of equity investments | 546,399 | (286,399) |
Net sales (purchases) of short term investments | (1,656,772) | 939,736 |
Net sales (purchases) of other investments | (490,366) | (397,523) |
Net sales (purchases) of investments in other ventures | (13,048) | |
Net sales (purchases) of investments in other ventures | 2,391 | |
Return of investment from investment in other ventures | 2,369 | 2,213 |
Net cash provided by (used in) investing activities | (3,181,266) | (955,534) |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | (35,992) | (32,437) |
Dividends paid – preference shares | (17,688) | (17,780) |
RenaissanceRe common share issuance, net of expenses | 1,352,583 | 0 |
RenaissanceRe common share repurchases | 0 | (141,356) |
Issuance of debt, net of expenses | 741,597 | 0 |
Repayment of debt | (30,000) | 0 |
Net third-party redeemable noncontrolling interest share transactions | 310,135 | 408,774 |
Taxes paid on withholding shares | (18,837) | (10,848) |
Net cash provided by (used in) financing activities | 2,301,798 | 206,353 |
Effect of exchange rate changes on foreign currency cash | 2,390 | 19,088 |
Net increase (decrease) in cash and cash equivalents | (250,404) | (460,924) |
Cash and cash equivalents, beginning of period | 1,194,339 | 1,859,019 |
Cash and cash equivalents, end of period | $ 943,935 | $ 1,398,095 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION This report on Form 10-Q should be read in conjunction with RenaissanceRe’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“Form 10-K”). RenaissanceRe was formed under the laws of Bermuda on June 7, 1993. Together with its wholly owned and majority-owned subsidiaries, joint ventures and managed funds, the Company provides property, casualty and specialty reinsurance and certain insurance solutions to its customers. • Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), a Bermuda-domiciled reinsurance company, is the Company’s principal reinsurance subsidiary and provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. • Renaissance Reinsurance U.S. Inc. (“Renaissance Reinsurance U.S.”) is a reinsurance company domiciled in the state of Maryland that provides property, casualty and specialty reinsurance coverages to insurers and reinsurers, primarily in the Americas. • RenaissanceRe Syndicate 1458 (“Syndicate 1458”) is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited (“RenaissanceRe CCL”), a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member. RenaissanceRe Syndicate Management Ltd. (“RSML”), a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458. • RenaissanceRe Europe AG (“RREAG”), a Swiss-domiciled reinsurance company, which has branches in Australia, Bermuda, the U.K. and the U.S., provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. • RenaissanceRe Specialty U.S. Ltd. (“RenaissanceRe Specialty U.S.”), a Bermuda-domiciled insurer, which operates subject to U.S. federal income tax. • DaVinci Reinsurance Ltd. (“DaVinci Reinsurance”), a wholly-owned subsidiary of DaVinciRe Holdings Ltd. (“DaVinci”), is a managed joint venture formed by the Company to principally write property catastrophe reinsurance and certain casualty and specialty reinsurance lines of business on a global basis. • Vermeer Reinsurance Ltd. (“Vermeer”) is a managed joint venture formed by the Company to provide capacity focused on risk remote layers in the U.S. property catastrophe market. The Company maintains a majority voting control of Vermeer, while Stichting Pensioenfonds Zorg en Welzijn (“PFZW”), a pension fund represented by PGGM Vermogensbeheer B.V., a Dutch pension fund manager, retains economic benefits. • Fontana Holdings L.P. and its subsidiaries (collectively, “Fontana”) are a managed joint venture formed by the Company to assume casualty and specialty risks in line with the Company’s book of business. Fontana launched effective April 1, 2022. • Top Layer Reinsurance Ltd. (“Top Layer”) is a managed joint venture formed by the Company to write high excess non-U.S. property catastrophe reinsurance. • RenaissanceRe Underwriting Managers U.S. LLC, is licensed as a reinsurance intermediary broker in the State of Connecticut and underwrites specialty treaty reinsurance solutions on both a quota share and excess of loss basis on behalf of affiliates. • Renaissance Underwriting Managers, Ltd. (“RUM”), a wholly-owned subsidiary of RenaissanceRe, is the exclusive underwriting manager for certain of our joint ventures or managed funds in return for a management fee, performance fee, or both. • RenaissanceRe Fund Management Ltd. (“RFM”) is a wholly-owned Bermuda exempted company and is the exclusive investment fund manager for several of the Company’s joint ventures or managed funds, in return for a management fee, a performance based incentive fee, or both. RFM is an Exempt Reporting Adviser with the Securities and Exchange Commission and serves as the investment adviser to third-party investors in the various private investment partnerships and insurance-related investment products offered by the Company. • RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted company, incorporated in Bermuda and registered as an institutional fund. Medici invests, primarily on behalf of third-party investors, in various instruments that have returns primarily tied to property catastrophe risk. • Upsilon RFO Re Ltd. (“Upsilon RFO”), an exempted company incorporated in Bermuda and registered as a segregated accounts company and as a collateralized insurer, is a managed fund formed by the Company principally to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market. • RenaissanceRe Upsilon Fund Ltd., an exempted company incorporated in Bermuda and registered as a segregated accounts company and a Class A Professional Fund, provides a fund structure through which third-party investors can invest in reinsurance risk managed by the Company. • Mona Lisa Re Ltd. (“Mona Lisa Re”), a Bermuda domiciled special purpose insurer (“SPI”), provides reinsurance capacity to subsidiaries of RenaissanceRe through reinsurance agreements which are collateralized and funded by Mona Lisa Re through the issuance of one or more series of principal-at-risk variable rate notes. • Fibonacci Reinsurance Ltd. (“Fibonacci Re”), an exempted company incorporated in Bermuda and registered as an SPI, was formed to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raises capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. • The Company and Reinsurance Group of America, Incorporated formed an initiative (“Langhorne”) to source third-party capital to support reinsurers targeting large in-force life and annuity blocks. Langhorne’s capital commitment period expired at the end of December 2022 and the Langhorne entities have been, or are, in the process of winding down. • Following the acquisition of Tokio Millennium Re AG and certain associated entities and subsidiaries (collectively, “TMR”) on March 22, 2019, the Company managed Shima Reinsurance Ltd. (“Shima Re”), Norwood Re Ltd. (“Norwood Re”) and Blizzard Re Ltd. (“Blizzard,” together with Shima Re and Norwood Re, the “TMR managed third-party capital vehicles”), which provided third-party investors with access to reinsurance risk. The TMR managed third-party capital vehicles no longer write new business. The Company ceased providing management services to Blizzard effective November 1, 2020, and to Shima Re and Norwood Re effective December 1, 2020. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Company’s significant accounting policies as described in its Form 10-K for the year ended December 31, 2022, except as described below. BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these statements. Certain comparative information has been reclassified to conform to the current presentation. Because of the seasonality of the Company’s business, the results of operations and cash flows for any interim period will not necessarily be indicative of the results of operations and cash flows for the full fiscal year or subsequent quarters. USE OF ESTIMATES IN FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the reserve for claims and claim expenses; reinsurance recoverable and premiums receivable, including provisions for reinsurance recoverable and premiums receivable to reflect expected credit losses; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; and the Company’s deferred tax valuation allowance. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturity Investments Trading The following table summarizes the fair value of fixed maturity investments trading: June 30, December 31, U.S. treasuries $ 8,592,242 $ 7,180,129 Corporate (1) 4,371,407 4,390,568 Agencies 476,476 395,149 Non-U.S. government 401,743 383,838 Residential mortgage-backed 788,256 710,429 Commercial mortgage-backed 209,661 213,987 Asset-backed 1,048,779 1,077,302 Total fixed maturity investments trading $ 15,888,564 $ 14,351,402 (1) Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, December 31, Amortized Fair Value Amortized Cost Fair Value Due in less than one year $ 522,097 $ 515,445 $ 364,501 $ 356,770 Due after one through five years 8,653,072 8,444,588 8,117,971 7,875,771 Due after five through ten years 4,748,683 4,578,779 4,072,142 3,805,287 Due after ten years 331,809 303,056 356,268 311,856 Mortgage-backed 1,073,223 997,917 1,009,205 924,416 Asset-backed 1,069,798 1,048,779 1,118,464 1,077,302 Total $ 16,398,682 $ 15,888,564 $ 15,038,551 $ 14,351,402 Equity Investments The following table summarizes the fair value of equity investments: June 30, December 31, Financials $ 92,890 $ 103,250 Consumer 155 33,447 Communications and technology 13 48,687 Fixed income exchange traded funds — 295,481 Equity exchange traded funds — 90,510 Industrial, utilities and energy — 25,326 Healthcare — 24,617 Basic materials — 3,740 Total $ 93,058 $ 625,058 Pledged Investments At June 30, 2023, $7.3 billion (December 31, 2022 - $7.9 billion) of cash and investments at fair value were on deposit with, or in trust accounts for the benefit of, various counterparties, including with respect to the Company’s letter of credit facilities. Of this amount, $1.3 billion (December 31, 2022 - $1.2 billion) is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities. Reverse Repurchase Agreements At June 30, 2023, the Company held $486.2 million (December 31, 2022 - $38.5 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of short term investments on the Company’s consolidated balance sheets. The required collateral for these loans typically includes high-quality, readily marketable instruments at a minimum amount of 102% of the loan principal. Upon maturity, the Company receives principal and interest income. Net Investment Income The components of net investment income are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Fixed maturity investments trading $ 169,739 $ 76,547 $ 325,239 $ 138,964 Short term investments 50,231 4,397 83,181 5,533 Equity investments 2,766 4,516 6,165 7,270 Other investments Catastrophe bonds 49,522 20,235 88,353 37,595 Other 20,820 6,894 45,391 12,446 Cash and cash equivalents 4,585 (95) 8,849 (136) 297,663 112,494 557,178 201,672 Investment expenses (5,001) (5,283) (10,138) (10,770) Net investment income $ 292,662 $ 107,211 $ 547,040 $ 190,902 Net Realized and Unrealized Gains (Losses) on Investments Net realized and unrealized gains (losses) on investments are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Net realized gains (losses) on fixed maturity investments trading $ (74,212) $ (287,154) $ (178,977) $ (408,306) Net unrealized gains (losses) on fixed maturity investments trading (139,793) (149,820) 172,233 (613,997) Net realized and unrealized gains (losses) on fixed maturity investments trading (214,005) (436,974) (6,744) (1,022,303) Net realized and unrealized gains (losses) on investments-related derivatives (1) (65,051) (66,078) (52,889) (106,366) Net realized gains (losses) on equity investments (18,755) 35,592 (27,493) 35,572 Net unrealized gains (losses) on equity investments 20,627 (127,104) 59,778 (175,773) Net realized and unrealized gains (losses) on equity investments 1,872 (91,512) 32,285 (140,201) Net realized and unrealized gains (losses) on other investments - catastrophe bonds 38,186 (24,660) 62,312 (32,921) Net realized and unrealized gains (losses) on other investments - other 16,217 (34,883) 21,706 (25,333) Net realized and unrealized gains (losses) on investments $ (222,781) $ (654,107) $ 56,670 $ (1,327,124) (1) Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures, interest rate swaps, credit default swaps and total return swaps), and equity investments related derivatives (equity futures). See “Note 13. Derivative Instruments” for additional information. Net Sales (Purchases) of Investments The tables below show the Company’s cash flows in respect of gross and net purchases and sales of equity investments, short term investments, other investments and investments in other ventures for the six months ended June 30, 2023 and 2022. Six months ended June 30, 2023 Gross Purchases Gross Sales Net Equity investments $ (1,687) $ 548,086 $ 546,399 Short term investments $ (19,067,333) $ 17,410,561 $ (1,656,772) Other investments $ (750,539) $ 260,173 $ (490,366) Investments in other ventures $ (13,048) $ — $ (13,048) Six months ended June 30, 2022 Gross Purchases Gross Sales Net Equity investments $ (498,171) $ 211,772 $ (286,399) Short term investments $ (13,619,935) $ 14,559,671 $ 939,736 Other investments $ (682,151) $ 284,628 $ (397,523) Investments in other ventures $ (949) $ 3,340 $ 2,391 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The use of fair value to measure certain assets and liabilities with resulting unrealized gains or losses is pervasive within the Company’s consolidated financial statements. Fair value is defined under accounting guidance currently applicable to the Company as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. The Company recognizes the change in unrealized gains or losses arising from changes in fair value in its consolidated statements of operations. FASB ASC Topic Fair Value Measurements and Disclosures prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to valuation techniques that use at least one significant input that is unobservable (Level 3). The three levels of the fair value hierarchy are described below: • Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access at the measurement date. The fair value is determined by multiplying the quoted price by the quantity held by the Company; • Fair values determined by Level 2 inputs utilize inputs (other than quoted prices included in Level 1) that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and • Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement of the asset or liability. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the asset or liability. In order to determine if a market is active or inactive for a security, the Company considers a number of factors, including, but not limited to, the spread between what a seller is asking for a security and what a buyer is bidding for the same security, the volume of trading activity for the security in question, the price of the security compared to its par value (for fixed maturity investments), and other factors that may be indicative of market activity. There have been no material changes in the Company’s valuation techniques, nor have there been any transfers between Level 1 and Level 2, or Level 2 and Level 3 during the period represented by these consolidated financial statements. Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets: At June 30, 2023 Total Quoted Significant Significant Fixed maturity investments trading U.S. treasuries $ 8,592,242 $ 8,592,242 $ — $ — Corporate (1) 4,371,407 — 4,371,407 — Agencies 476,476 — 476,476 — Non-U.S. government 401,743 — 401,743 — Residential mortgage-backed 788,256 — 788,256 — Commercial mortgage-backed 209,661 — 209,661 — Asset-backed 1,048,779 — 1,048,779 — Total fixed maturity investments trading 15,888,564 8,592,242 7,296,322 — Short term investments 6,373,969 94,474 6,279,495 — Equity investments trading 93,058 93,058 — — Other investments Catastrophe bonds 1,679,184 — 1,679,184 — Term loans 100,000 — — 100,000 Direct private equity investments 71,155 — — 71,155 1,850,339 — 1,679,184 171,155 Fund investments (2) 1,241,347 — — — Total other investments 3,091,686 — 1,679,184 171,155 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (3) (475) — — (475) Derivative assets (4) 25,307 370 24,937 — Derivative liabilities (4) (14,989) (2,113) (12,876) — Total other assets and (liabilities) 9,843 (1,743) 12,061 (475) $ 25,457,120 $ 8,778,031 $ 15,267,062 $ 170,680 (1) Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. (2) Fund investments, which may include private equity funds, private credit funds, and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (3) Included in assumed and ceded (re)insurance contracts at June 30, 2023 was $0.6 million of other assets and $1.0 million of other liabilities. (4) Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. At December 31, 2022 Total Quoted Significant Significant Fixed maturity investments trading U.S. treasuries $ 7,180,129 $ 7,180,129 $ — $ — Corporate (1) 4,390,568 — 4,390,568 — Agencies 395,149 — 395,149 — Non-U.S. government 383,838 — 383,838 — Residential mortgage-backed 710,429 — 710,429 — Commercial mortgage-backed 213,987 — 213,987 — Asset-backed 1,077,302 — 1,077,302 — Total fixed maturity investments trading 14,351,402 7,180,129 7,171,273 — Short term investments 4,669,272 — 4,669,272 — Equity investments 625,058 625,058 — — Other investments Catastrophe bonds 1,241,468 — 1,241,468 — Term loans 100,000 100,000 Direct private equity investments 66,780 — — 66,780 1,408,248 — 1,241,468 166,780 Fund investments (2) 1,086,706 — — — Total other investments 2,494,954 — 1,241,468 166,780 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (3) (1,832) — — (1,832) Derivative assets (4) 44,400 387 44,013 — Derivative liabilities (4) (7,560) (2,008) (5,552) — Total other assets and (liabilities) 35,008 (1,621) 38,461 (1,832) $ 22,175,694 $ 7,803,566 $ 13,120,474 $ 164,948 (1) Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. (2) Fund investments, which may include private equity funds, private credit funds and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (3) Included in assumed and ceded (re)insurance contracts at December 31, 2022 was $3.5 million of other assets and $5.3 million of other liabilities. (4) Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. Level 1 and Level 2 Assets and Liabilities Measured at Fair Value Fixed Maturity Investments Fixed maturity investments included in Level 1 consist of the Company’s investments in U.S. treasuries. Fixed maturity investments included in Level 2 are agencies, corporate (including non-U.S. government-backed corporate), non-U.S. government, residential mortgage-backed, commercial mortgage-backed and asset-backed. The Company’s fixed maturity investments are primarily priced using pricing services, such as index providers and pricing vendors, as well as broker quotations. In general, the pricing vendors provide pricing for a high volume of liquid securities that are actively traded. For securities that do not trade on an exchange, the pricing services generally utilize market data and other observable inputs in matrix pricing models to determine month end prices. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids, offers, reference data and industry and economic events. Index pricing generally relies on market traders as the primary source for pricing; however, models are also utilized to provide prices for all index eligible securities. The models use a variety of observable inputs such as benchmark yields, transactional data, dealer runs, broker-dealer quotes and corporate actions. Prices are generally verified using third-party data. Securities which are priced by an index provider are generally included in the index. In general, broker-dealers value securities through their trading desks based on observable inputs. The methodologies include mapping securities based on trade data, bids or offers, observed spreads, and performance on newly issued securities. Broker-dealers also determine valuations by observing secondary trading of similar securities. Prices obtained from broker quotations are considered non-binding, however they are based on observable inputs and by observing secondary trading of similar securities obtained from active and non-distressed markets. The Company considers these broker quotations to be Level 2 inputs as they are corroborated with other market observable inputs. The techniques generally used to determine the fair value of the Company’s fixed maturity investments are detailed below by asset class. U.S. Treasuries Level 1 - At June 30, 2023, the Company’s U.S. treasuries fixed maturity investments were primarily priced by pricing services and had a weighted average yield to maturity of 4.5% and a weighted average credit quality of AA (December 31, 2022 - 4.3% and AA, respectively). When pricing these securities, the pricing services utilize daily data from many real time market sources, including active broker-dealers. Certain data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source is used for each issue and maturity date. Corporate Level 2 - At June 30, 2023, the Company’s corporate fixed maturity investments principally consisted of U.S. and international corporations and non-U.S. government-backed corporations and had a weighted average yield to maturity of 6.4% and a weighted average credit quality of BBB (December 31, 2022 - 6.3% and BBB, respectively). The Company’s corporate fixed maturity investments, other than non-U.S. government-backed corporations, are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker-dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk. In certain instances, securities are individually evaluated using a spread which is added to the U.S. treasury curve or a security specific swap curve as appropriate. Non-U.S. government-backed corporate fixed maturity investments are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high quality credits. The pricing services then apply a credit spread to the respective curve for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Agencies Level 2 - At June 30, 2023, the Company’s agency fixed maturity investments had a weighted average yield to maturity of 5.1% and a weighted average credit quality of AA (December 31, 2022 - 4.6% and AA, respectively). The issuers of the Company’s agency fixed maturity investments primarily consist of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Fixed maturity investments included in agencies are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker-dealer quotes and other market information including actual trade volumes, when available. The fair value of each security is individually computed using analytical models which incorporate option adjusted spreads and other daily interest rate data. Non-U.S. Government Level 2 - At June 30, 2023, the Company’s non-U.S. government fixed maturity investments had a weighted average yield to maturity of 4.8% and a weighted average credit quality of AA (December 31, 2022 - 4.7% and AA, respectively). The issuers of securities in this sector are non-U.S. governments and their respective agencies as well as supranational organizations. Securities held in these sectors are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Residential Mortgage-backed Level 2 - At June 30, 2023, the Company’s residential mortgage-backed fixed maturity investments had a weighted average yield of maturity of 5.5%, a weighted average credit quality of A, and a weighted average life of 8.1 years (December 31, 2022 - 5.4%, A and 8.6 years, respectively). Residential mortgage-backed securities include both agency and non-agency mortgage-backed securities. The Company’s agency mortgage-backed fixed maturity investments are primarily priced by pricing services using a mortgage pool specific model which utilizes daily inputs from the active to-be-announced market which is very liquid, as well as the U.S. treasury market. The model also utilizes additional information, such as the weighted average maturity, weighted average coupon and other available pool level data which is provided by the sponsoring agency. Valuations are also corroborated with active market quotes. Non-agency mortgage-based securities are primarily priced by pricing services using an option adjusted spread model or other relevant models, which principally utilize inputs including benchmark yields, available trade information or broker quotes, and issuer spreads. The pricing services also review collateral prepayment speeds, loss severity and delinquencies among other collateral performance indicators for the securities valuation, when applicable. Commercial Mortgage-backed Level 2 - At June 30, 2023, the Company’s commercial mortgage-backed fixed maturity investments had a weighted average yield to maturity of 8.6%, a weighted average credit quality of AA, and a weighted average life of 2.4 years (December 31, 2022 - 7.4%, AA and 3.2 years, respectively). Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services discount the expected cash flows for each security held in this sector using a spread adjusted benchmark yield based on the characteristics of the security. Asset-backed Level 2 - At June 30, 2023, the Company’s asset-backed fixed maturity investments had a weighted average yield to maturity of 7.4%, a weighted average credit quality of AA and a weighted average life of 4.6 years (December 31, 2022 - 7.4%, AA and 5.2 years, respectively). The underlying collateral for the Company’s asset-backed fixed maturity investments primarily consists of collateralized loan obligations and other receivables. Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services determine the expected cash flows for each security held in this sector using historical prepayment and default projections for the underlying collateral and current market data. In addition, a spread is applied to the relevant benchmark and used to discount the cash flows noted above to determine the fair value of the securities held in this sector. Short Term Investments Level 1 - At June 30, 2023, the Company’s short term investments in U.S. treasuries were primarily priced by pricing services and had a weighted average yield to maturity of 5.1% and a weighted average credit quality of AAA (December 31, 2022 - 4.0% and AAA). When pricing these securities, the pricing services utilize daily data from many real time market sources, including active broker-dealers. Certain data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source is used for each issue and maturity date. Level 2 - At June 30, 2023, the Company’s other short term investments had a weighted average yield to maturity of 5.1% and a weighted average credit quality of AAA (December 31, 2022 - 4.2% and AAA, respectively). Amortized cost approximates fair value for the majority of the remainder of the Company’s short term investments portfolio and, in certain cases, fair value is determined in a manner similar to the Company’s fixed maturity investments noted above. Equity Investments Level 1 - The fair value of the Company’s portfolio of equity investments, classified as trading is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period. When pricing these securities, the pricing services utilize daily data from many real time market sources, including applicable securities exchanges. All data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source was used for each security. Other Investments Catastrophe Bonds Level 2 - The Company’s other investments include investments in catastrophe bonds which are recorded at fair value based on broker or underwriter bid indications. Other Assets and Liabilities Derivatives Level 1 and Level 2 - Other assets and liabilities include certain derivatives entered into by the Company. The fair value of these transactions includes certain exchange traded futures contracts which are considered Level 1, and foreign currency contracts and certain credit derivatives, determined using standard industry valuation models and considered Level 2, as the inputs to the valuation model are based on observable market inputs. For credit derivatives, these inputs include credit spreads, credit ratings of the underlying referenced security, the risk-free rate and the contract term. For foreign currency contracts, these inputs include spot rates and interest rate curves. Level 3 Assets and Liabilities Measured at Fair Value Below is a summary of quantitative information regarding the significant unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis: At June 30, 2023 Fair Value Valuation Technique Unobservable Low High Weighted Average or Actual Other investments Direct private equity investments $ 71,155 Internal valuation model Discount rate n/a n/a 10.0% Liquidity discount n/a n/a 15.0 % Term loans 100,000 Discounted cash flow Credit spread adjustment n/a n/a 0.2 % Risk premium n/a n/a 2.6 % Total other investments 171,155 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (475) Internal valuation model Net undiscounted cash flows n/a n/a $ 12,389 Expected loss ratio n/a n/a 2.9 % Discount rate n/a n/a 4.0 % Total other assets and (liabilities) (475) Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 170,680 At December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Low High Weighted Average or Actual Other investments Direct private equity investments $ 66,780 Internal valuation model Discount rate n/a n/a 7.5 % Liquidity discount n/a n/a 15.0 % Term loans 100,000 Discounted cash flow Credit spread Adjustment n/a n/a 0.2 % Risk premium n/a n/a 2.6 % Total other investments 166,780 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (1,832) Internal valuation model Net undiscounted cash flows n/a n/a $ 14,734 Expected loss ratio n/a n/a 5.8 % Discount rate n/a n/a 4.0 % Total other assets and (liabilities) (1,832) Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 164,948 Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Other Other assets Total Direct private equity investments Term loans Balance - April 1, 2023 $ 67,532 $ 100,000 $ (1,112) $ 166,420 Included in net investment income 62 — — 62 Included in net realized and unrealized gains (losses) on investments 3,548 — — 3,548 Included in other income (loss) — — (1,029) (1,029) Total foreign exchange gains (losses) 13 — — 13 Purchases — — 1,666 1,666 Balance - June 30, 2023 $ 71,155 $ 100,000 $ (475) $ 170,680 Other Other assets Total Direct private equity investments Term loans Balance - January 1, 2023 $ 66,780 $ 100,000 $ (1,832) $ 164,948 Included in net investment income 124 — — 124 Included in net realized and unrealized gains (losses) on investments 4,257 — — 4,257 Included in other income (loss) — — (9) (9) Total foreign exchange gains (losses) (6) — — (6) Purchases — — 1,366 1,366 Balance - June 30, 2023 $ 71,155 $ 100,000 $ (475) $ 170,680 Other Other assets and (liabilities) Total Direct private equity investments Term loans Balance - April 1, 2022 $ 80,213 $ 85,000 $ (4,099) $ 161,114 Included in net investment income — — — — Included in net realized and unrealized gains (losses) on investments (3,603) — — (3,603) Included in other income (loss) — — 280 280 Purchases 5,000 15,000 755 20,755 Balance - June 30, 2022 $ 81,610 $ 100,000 $ (3,064) $ 178,546 Other Other assets and (liabilities) Total Direct private equity investments Term loans Balance - January 1, 2022 $ 88,373 $ 74,850 $ (4,727) $ 158,496 Included in net investment income — 605 — 605 Included in net realized and unrealized gains (losses) on investments (11,753) — — (11,753) Included in other income (loss) — — 1,189 1,189 Total foreign exchange losses (10) — — (10) Purchases 5,000 25,000 474 30,474 Settlements — (455) — (455) Balance - June 30, 2022 $ 81,610 $ 100,000 $ (3,064) $ 178,546 Other Investments Direct private equity investments Level 3 - At June 30, 2023, the Company’s other investments included $71.2 million (December 31, 2022 - $66.8 million) of direct private equity investments which are recorded at fair value, with the fair value obtained through the use of internal valuation models. The Company measured the fair value of these investments using multiples of net tangible book value of the underlying entities. The significant unobservable inputs used in the fair value measurement of these investments are liquidity discount rates applied to each of the net tangible book value multiples used in the internal valuation models, and discount rates applied to the expected cash flows of the underlying entities in various scenarios. These unobservable inputs in isolation can cause significant increases or decreases in fair value. Generally, an increase in the liquidity discount rate or discount rates would result in a decrease in the fair value of these private equity investments. Term Loans Level 3 - At June 30, 2023, the Company’s other investments included a $100.0 million (December 31, 2022 - $100.0 million) investment in a term loan which is recorded at fair value, with the fair value obtained through the use of a discounted cash flow model. The significant unobservable inputs used in the discounted cash flow model are the cash flow projection of the associated term loan, and the discount rate. The discount rate used is based on the Secured Overnight Financing Rate, or SOFR, which is then adjusted for credit risk and a risk premium. These adjustments may be impacted by market movements implied by transactions of similar or related assets, loan-to-value, tenor, liquidity, credit risk adjustment or other risk factors. Assumptions used in the valuation process may significantly impact the resulting fair value . Other Assets and Liabilities Assumed and Ceded (Re)insurance Contracts Level 3 - At June 30, 2023, the Company had a $0.5 million net liability (December 31, 2022 - $1.8 million net liability) related to assumed and ceded (re)insurance contracts accounted for at fair value, with the fair value obtained through the use of an internal valuation model. The inputs to the internal valuation model are principally based on proprietary data as observable market inputs are generally not available. The most significant unobservable inputs include the assumed and ceded expected net cash flows related to the contracts, including the expected premium, acquisition expenses and losses; the expected loss ratio and the relevant discount rate used to present value the net cash flows. The contract period and acquisition expense ratio are considered an observable input as each is defined in the contract. Generally, an increase in the net expected cash flows and expected term of the contract and a decrease in the discount rate, expected loss ratio or acquisition expense ratio, would result in an increase in the expected profit and ultimate fair value of these assumed and ceded (re)insurance contracts. Financial Instruments Disclosed, But Not Carried, at Fair Value The Company uses various financial instruments in the normal course of its business. The Company’s (re)insurance contracts are excluded from the fair value of financial instruments accounting guidance, unless the Company elects the fair value option, and therefore, are not included in the amounts discussed herein. The carrying values of cash and cash equivalents, accrued investment income, receivables for investments sold, certain other assets, payables for investments purchased, certain other liabilities, and other financial instruments not included herein approximated their fair values. Debt Included on the Company’s consolidated balance sheet at June 30, 2023 were debt obligations of $1.9 billion (December 31, 2022 - $1.2 billion). At June 30, 2023, the fair value of the Company’s debt obligations was $1.8 billion (December 31, 2022 – $1.1 billion). The fair value of the Company’s debt obligations is determined using indicative market pricing obtained from third-party service providers, which the Company considers Level 2 in the fair value hierarchy. There have been no changes during the period in the Company’s valuation technique used to determine the fair value of the Company’s debt obligations. Refer to “Note 7. Debt and Credit Facilities” for additional information related to the Company’s debt obligations. The Fair Value Option for Financial Assets and Financial Liabilities The Company has elected to account for certain financial assets and financial liabilities at fair value using the guidance under FASB ASC Topic Financial Instruments as the Company believes it represents the most meaningful measurement basis for these assets and liabilities. Below is a summary of the balances the Company has elected to account for at fair value: June 30, December 31, Other investments $ 3,091,686 $ 2,494,954 Other assets $ 557 $ 3,499 Other liabilities $ 1,032 $ 5,331 The change in fair value of other investments resulted in net unrealized gains on investments for the three and six months ended June 30, 2023 of $50.2 million and $80.4 million, respectively (June 30, 2022 – net unrealized losses of $64.6 million and $70.7 million, respectively). Measuring the Fair Value of Other Investments Using Net Asset Valuations The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient: At June 30, 2023 Fair Value Unfunded Redemption Frequency Redemption Redemption Private credit funds $ 876,010 $ 628,000 See below See below See below Private equity funds 365,337 535,839 See below See below See below Total other investments measured using net asset valuations $ 1,241,347 $ 1,163,839 At December 31, 2022 Fair Value Unfunded Redemption Frequency Redemption Redemption Private credit funds $ 771,383 $ 714,302 See below See below See below Private equity funds 315,323 493,155 See below See below See below Total other investments measured using net asset valuations $ 1,086,706 $ 1,207,457 Private Credit Funds The Company’s investments in private credit funds include limited partnership or similar interests that invest in certain private credit asset classes, including U.S. direct lending funds, secondaries, mezzanine investments, distressed securities and senior secured bank loan funds. The Company generally has no right to redeem its interest in any of these private credit funds in advance of dissolution of the applicable limited partnerships. Instead, distributions are received by the Company in connection with the liquidation or maturity of the underlying private credit assets of the fund. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 5 to 10 years from inception of the limited partnership. Private Equity Funds The Company’s investments in private equity funds include limited partnership or similar interests that invest in certain private equity asset classes including U.S. and global leveraged buyouts. The Company generally has no right to redeem its interest in any of these private equity funds in advance of dissolution of the applicable limited partnerships. Instead, distributions are received by the Company in connection with the exit from the underlying private equity investments of the fund. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 5 to 10 years from inception of the limited partnership. Limited Partnerships Entities The Company’s fund investments, included within other investments, represent variable interests in limited partnerships entities with unaffiliated fund managers in the normal course of business. The Company determined that certain of these limited partnership interests represent investments in variable interest entities (“VIEs”) and that it is not required to consolidate these investments because it is not the primary beneficiary of these VIEs. The Company’s maximum exposure to loss with respect to these VIEs is limited to the carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment. The following table summarizes the aggregate carrying amount of the unconsolidated fund investments in VIEs, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss At June 30, 2023 Carrying amount Unfunded Commitments Total Other investments $ 1,078,812 $ 1,092,334 $ 2,171,146 At December 31, 2022 Other investments $ 916,248 $ 1,148,630 $ 2,064,878 |
REINSURANCE
REINSURANCE | 6 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
REINSURANCE | REINSURANCE The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company’s ceded reinsurance contracts provide for payments of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to the respective reinsurance contracts. The Company remains liable to the extent that any reinsurer fails to meet its obligations. The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred: Three months ended Six months ended June 30, June 30, June 30, June 30, Premiums Written Direct $ 278,695 $ 338,761 $ 451,391 $ 639,866 Assumed 2,372,926 2,125,878 4,990,491 4,767,737 Ceded (455,818) (601,023) (982,376) (1,378,770) Net premiums written $ 2,195,803 $ 1,863,616 $ 4,459,506 $ 4,028,833 Premiums Earned Direct $ 281,437 $ 278,609 $ 535,456 $ 521,370 Assumed 1,903,299 1,610,214 3,746,968 3,300,482 Ceded (399,474) (432,440) (816,612) (879,044) Net premiums earned $ 1,785,262 $ 1,456,383 $ 3,465,812 $ 2,942,808 Claims and Claim Expenses Gross claims and claim expenses incurred $ 1,089,656 $ 799,218 $ 2,049,360 $ 1,816,773 Claims and claim expenses recovered (158,445) (92,979) (316,949) (268,801) Net claims and claim expenses incurred $ 931,211 $ 706,239 $ 1,732,411 $ 1,547,972 In assessing an allowance for reinsurance assets, which includes premiums receivable and reinsurance recoverable, the Company considers historical information, financial strength of reinsurers, collateralization amounts, and counterparty credit ratings to determine the appropriateness of the allowance. In assessing future default for reinsurance assets, the Company evaluates the provision for current expected credit losses under the probability of default and loss given default method. The Company utilizes its internal capital and risk models, which use counterparty ratings from major rating agencies, and assesses the current market conditions for the likelihood of default. The Company updates its internal capital and risk models for counterparty credit ratings and current market conditions on a periodic basis. Historically, the Company has not experienced material credit losses from reinsurance assets. Premiums receivable reflect premiums written based on contract and policy terms and include estimates based on information received from both insureds and ceding companies, supplemented by our own judgement, including our estimates of premiums that are written but not reported. Due to the nature of reinsurance, ceding companies routinely report and remit premiums to us subsequent to the contract coverage period, although the time lag involved in the process of reporting and collecting premiums is typically shorter than the lag in reporting losses. At June 30, 2023, the Company’s premiums receivable balance was $6.5 billion (December 31, 2022 - $5.1 billion). Of the Company’s premiums receivable balance as of June 30, 2023, the majority are receivable from highly rated counterparties. The provision for current expected credit losses on the Company’s premiums receivable was $3.2 million at June 30, 2023 (December 31, 2022 - $4.6 million). The following table provides a roll forward of the provision for current expected credit losses of the Company’s premiums receivable: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Beginning balance $ 3,371 $ 2,776 $ 4,606 $ 2,776 Provision for (release of) allowance (220) 1,574 (1,455) 1,574 Ending balance $ 3,151 $ 4,350 $ 3,151 $ 4,350 Reinsurance recoverable reflects amounts due from reinsurers based on the claim liabilities associated with the reinsurance policy. The Company accrues amounts that are due from reinsurers based on estimated ultimate losses applicable to the contracts. At June 30, 2023, the Company’s reinsurance recoverable balance was $4.7 billion (December 31, 2022 - $4.7 billion). Of the Company’s reinsurance recoverable balance at June 30, 2023, 46.6% is fully collateralized by our reinsurers, 52.7% is recoverable from reinsurers rated A- or higher by major rating agencies and 0.7% is recoverable from reinsurers rated lower than A- by major rating agencies (December 31, 2022 - 47.2%, 52.0% and 0.8%, respectively). The reinsurers with the three largest balances accounted for 17.9%, 9.6% and 6.4%, respectively, of the Company’s reinsurance recoverable balance at June 30, 2023 (December 31, 2022 - 20.8%, 7.0% and 5.4%, respectively). The provision for current expected credit losses was $11.5 million at June 30, 2023 (December 31, 2022 - $12.2 million). The three largest company-specific components of the provision for current expected credit losses represented 14.0%, 11.3% and 6.9%, respectively, of the Company’s total provision for current expected credit losses at June 30, 2023 (December 31, 2022 - 14.3%, 9.1% and 8.0%, respectively). The following table provides a roll forward of the provision for current expected credit losses of the Company’s reinsurance recoverable: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Beginning balance $ 11,504 $ 8,344 $ 12,169 $ 8,344 Provision for (release of) allowance (48) 661 (713) 661 Ending balance $ 11,456 $ 9,005 $ 11,456 $ 9,005 |
RESERVE FOR CLAIMS AND CLAIM EX
RESERVE FOR CLAIMS AND CLAIM EXPENSES | 6 Months Ended |
Jun. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
RESERVE FOR CLAIMS AND CLAIM EXPENSES | RESERVE FOR CLAIMS AND CLAIM EXPENSES The Company believes the most significant accounting judgment made by management is its estimate of claims and claim expense reserves. Claims and claim expense reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts the Company sells. The Company’s reserve for claims and claim expenses are a combination of case reserves, additional case reserves (“ACR”) and incurred but not reported losses and incurred but not enough reported losses (collectively referred to as “IBNR”). Case reserves are losses reported to the Company by insureds and ceding companies, but which have not yet been paid. If deemed necessary and in certain situations, the Company establishes ACR which represents the Company’s estimate for claims related to specific contracts which the Company believes may not be adequately estimated by the client as of that date or within the IBNR. The Company establishes IBNR using actuarial techniques and expert judgement to represent the anticipated cost of claims which have not been reported to the Company yet, or where the Company anticipates increased reporting. The Company’s reserving committee, which includes members of the Company’s senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our unaudited consolidated financial statements. The following table summarizes the Company’s reserve for claims and claim expenses by segment, allocated between case reserves, additional case reserves and IBNR: At June 30, 2023 Case Additional IBNR Total Property $ 2,011,450 $ 2,074,234 $ 2,847,946 $ 6,933,630 Casualty and Specialty 1,967,639 204,511 7,032,348 9,204,498 Total $ 3,979,089 $ 2,278,745 $ 9,880,294 $ 16,138,128 At December 31, 2022 Property $ 1,956,688 $ 2,008,891 $ 3,570,253 $ 7,535,832 Casualty and Specialty 1,864,365 167,993 6,324,383 8,356,741 Total $ 3,821,053 $ 2,176,884 $ 9,894,636 $ 15,892,573 Activity in the liability for unpaid claims and claim expenses is summarized as follows: Six months ended June 30, 2023 2022 Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period $ 11,181,648 $ 9,025,961 Net incurred related to: Current year 1,869,261 1,608,762 Prior years (136,850) (60,790) Total net incurred 1,732,411 1,547,972 Net paid related to: Current year 92,909 41,124 Prior years 1,406,684 1,129,979 Total net paid 1,499,593 1,171,103 Foreign exchange (1) 34,311 (166,483) Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period 11,448,777 9,236,347 Reinsurance recoverable as of end of period 4,689,351 4,206,459 Reserve for claims and claim expenses as of end of period $ 16,138,128 $ 13,442,806 (1) Reflects the impact of the foreign exchange revaluation of the reserve for claims and claim expenses, net of reinsurance recoverable, denominated in non-U.S. dollars as at the balance sheet date. Prior Year Development of the Reserve for Net Claims and Claim Expenses The Company’s estimates of claims and claim expense reserves are not precise in that, among other things, they are based on predictions of future developments and estimates of future trends and other variable factors. Some, but not all, of the Company’s reserves are further subject to the uncertainty inherent in actuarial methodologies and estimates. Because a reserve estimate is simply an insurer’s estimate at a point in time of its ultimate liability, and because there are numerous factors that affect reserves and claims payments that cannot be determined with certainty in advance, the Company’s ultimate payments will vary, perhaps materially, from its estimates of reserves. If the Company determines in a subsequent period that adjustments to its previously established reserves are appropriate, such adjustments are recorded in the period in which they are identified. On a net basis, the Company’s cumulative favorable or unfavorable development is generally reduced by offsetting changes in its reinsurance recoverable, as well as changes to loss related premiums such as reinstatement premiums and redeemable noncontrolling interest, all of which generally move in the opposite direction to changes in the Company’s ultimate claims and claim expenses. The following table details the Company’s prior year net development by segment of its net claims and claim expenses: Six months ended June 30, 2023 2022 (Favorable) adverse development (Favorable) adverse development Property $ (113,332) $ (51,810) Casualty and Specialty (23,518) (8,980) Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (136,850) $ (60,790) Changes to prior year estimated net claims and claim expenses increased net income by $136.9 million during the six months ended June 30, 2023 (2022 - decreased net loss by $60.8 million), excluding the consideration of changes in reinstatement, adjustment or other premium changes, profit commissions, redeemable noncontrolling interests - DaVinci, Vermeer and Fontana and income tax. Property Segment The following tables detail the development of the Company’s liability for net unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item: Six months ended June 30, 2023 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2022 Weather-Related Large Losses (1) $ 25,994 2021 Weather-Related Large Losses (2) (31,000) 2020 Weather-Related Large Loss Events (3) (3,077) 2019 Large Loss Events (4) (22,636) 2018 Large Loss Events (5) (24,059) 2017 Large Loss Events (6) (18,382) Other (620) Total large catastrophe events (73,780) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements (39,552) Total small catastrophe events and attritional loss movements (39,552) Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (113,332) (1) “2022 Weather-Related Large Losses” includes Hurricane Ian, the floods in Eastern Australia in February and March of 2022, Storm Eunice, the severe weather in France in May and June of 2022, Hurricane Fiona and the typhoons in Asia during the third quarter of 2022, Hurricane Nicole and Winter Storm Elliott during the fourth quarter of 2022, and loss estimates associated with certain aggregate loss contracts triggered during 2022 as a result of weather-related catastrophe events. (2) “2021 Weather-Related Large Losses” includes Winter Storm Uri, the European Floods, Hurricane Ida, the hail storm in Europe in late June 2021, the wildfires in California during the third quarter of 2021, the tornadoes in the Central and Midwest U.S. in December 2021, the Midwest Derecho in December 2021, and losses associated with aggregate loss contracts. (3) “2020 Weather-Related Large Loss Events” includes Hurricanes Laura, Sally, Isaias, Delta, Zeta and Eta, the California, Oregon and Washington wildfires, Typhoon Maysak, the August 2020 Derecho, and losses associated with aggregate loss contracts. (4) “2019 Large Loss Events” includes Hurricane Dorian and Typhoons Faxai and Hagibis and certain losses associated with aggregate loss contracts. (5) “2018 Large Loss Events” includes Typhoons Jebi, Mangkhut and Trami, Hurricane Florence, the wildfires in California during the third and fourth quarters of 2018, Hurricane Michael and certain losses associated with aggregate loss contracts. (6) “2017 Large Loss Events” includes Hurricanes Harvey, Irma and Maria, the Mexico City Earthquake, the wildfires in California during the fourth quarter of 2017 and certain losses associated with aggregate loss contracts. The net favorable development of prior accident years net claims and claim expenses was driven by better than expected loss emergence. The net favorable development on other small catastrophe events and attritional loss movements was related to lines of business where the Company principally estimates net claims and claim expenses using traditional actuarial methods. Six months ended June 30, 2022 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2021 Weather-Related Large Losses $ 4,385 2020 Weather-Related Large Loss Events (10,887) 2019 Large Loss Events (25,821) 2018 Large Loss Events (10,300) 2017 Large Loss Events (22,143) Other (2,578) Total large catastrophe events (67,344) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements 15,534 Total small catastrophe events and attritional loss movements 15,534 Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (51,810) The net favorable development of prior accident years net claims and claim expenses was largely driven by better than expected loss emergence. The net adverse development on other small catastrophe events and attritional loss movements was related to lines of business where the Company principally estimates net claims and claim expenses using traditional actuarial methods. Casualty and Specialty Segment The following table details the development of the Company’s prior accident years net claims and claim expenses for its Casualty and Specialty segment: Six months ended June 30, 2023 2022 (Favorable) adverse development (Favorable) adverse development Actuarial methods - actual reported claims less than expected claims $ (26,428) $ (27,315) Actuarial assumption changes 2,910 18,335 Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (23,518) $ (8,980) The net favorable development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment of $23.5 million in the six months ended June 30, 2023, was due to reported losses generally coming in lower than expected on attritional net claims and claim expenses driven by favorable experience, principally within the Company’s other specialty and credit lines of business. The net favorable development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment of $9.0 million in the six months ended June 30, 2022 was due to reported losses generally coming in lower than expected on attritional net claims and claim expenses, principally within the Company’s credit lines of business. |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT FACILITIES | DEBT AND CREDIT FACILITIES There have been no material changes to the Company’s debt obligations and credit facilities as described in its Form 10-K for the year ended December 31, 2022, except as described below or otherwise disclosed. The agreements governing the Company’s debt obligations and credit facilities contain certain customary representations, warranties and covenants. At June 30, 2023, the Company believes that it was in compliance with its debt covenants. Debt Obligations A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below: June 30, 2023 December 31, 2022 Fair value Carrying value Fair value Carrying value 5.750% Senior Notes due 2033 $ 736,995 $ 740,620 $ — $ — 3.600% Senior Notes due 2029 355,720 394,676 362,644 394,221 3.450% Senior Notes due 2027 280,005 298,022 280,506 297,775 3.700% Senior Notes due 2025 290,751 299,351 290,874 299,168 4.750% Senior Notes due 2025 (DaVinci) (1) 145,284 149,432 146,625 149,278 Total senior notes 1,808,755 1,882,101 1,080,649 1,140,442 Medici Revolving Credit Facility (2) — — 30,000 30,000 Total debt $ 1,808,755 $ 1,882,101 $ 1,110,649 $ 1,170,442 (1) RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinci. Because RenaissanceRe controls a majority of DaVinci’s issued voting shares, the consolidated financial statements of DaVinci are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinci and RenaissanceRe’s financial exposure to DaVinci is limited to its investment in DaVinci’s shares and counterparty credit risk arising from reinsurance transactions. (2) RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s outstanding issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions. 5.750% Senior Notes due 2033 On June 5, 2023, the Company issued $750.0 million of its 5.750% Senior Notes due June 5, 2033. The Company received net proceeds of approximately $741.0 million from the offering of senior notes after deducting the underwriting discounts and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from this offering to fund a portion of the cash consideration for the Validus Acquisition, to pay related costs and expenses, and for general corporate purposes. See “Note 15. Acquisition of Validus” for additional information regarding the Validus Acquisition. Subject to certain regulatory redemption requirements, if (i) the Validus Acquisition is not consummated on or before the specified mandatory redemption end date, or (ii) we notify the trustee that we will not pursue the consummation of the Validus Acquisition, we will be required to redeem the 5.750% Senior Notes due 2033 then outstanding at a redemption price equal to 101% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the special mandatory redemption date. Credit Facilities The outstanding amounts issued or drawn under each of the Company’s significant credit facilities is set forth below: At June 30, 2023 Issued or drawn Revolving Credit Facility (1) $ — Medici Revolving Credit Facility (2) — Bilateral Letter of Credit Facilities Secured 395,583 Unsecured 497,308 Funds at Lloyd’s Letter of Credit Facility 275,000 $ 1,167,891 (1) At June 30, 2023, no amounts were issued or drawn under this facility. (2) RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s outstanding issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions. At June 30, 2023, no amounts were issued or drawn under this facility. Uncommitted, Secured Standby Letter of Credit Facility with Wells Fargo On February 22, 2023, RenaissanceRe and certain of its subsidiaries and affiliates, including Renaissance Reinsurance, DaVinci Reinsurance, Renaissance Reinsurance U.S., RenaissanceRe Specialty U.S. and RREAG, entered into an amendment to its letter of credit facility with Wells Fargo Bank, National Association. The Amendment provides for, among other things, the option to request the issuance of up to $150.0 million of secured letters of credit in the aggregate, the removal of an unused option to request unsecured letters of credit, and certain other modifications to the provisions that require collateral to be pledged in favor of Wells Fargo to secure the applicants’ reimbursement obligations, including changes to the methodology for calculation of collateral values. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below: June 30, December 31, Redeemable noncontrolling interest - DaVinci $ 2,267,448 $ 1,740,300 Redeemable noncontrolling interest - Medici 1,540,520 1,036,218 Redeemable noncontrolling interest - Vermeer 1,590,408 1,490,840 Redeemable noncontrolling interest - Fontana 277,886 268,031 Redeemable noncontrolling interests $ 5,676,262 $ 4,535,389 A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below: Three months ended Six months ended June 30, June 30, June 30, June 30, Redeemable noncontrolling interest - DaVinci $ 59,527 $ 58,822 $ 225,609 $ 33,499 Redeemable noncontrolling interest - Medici 62,190 (26,887) 107,259 (32,174) Redeemable noncontrolling interest - Vermeer 52,163 22,937 99,568 41,635 Redeemable noncontrolling interest - Fontana 1,027 (5,541) 9,855 (5,541) Net income (loss) attributable to redeemable noncontrolling interests $ 174,907 $ 49,331 $ 442,291 $ 37,419 Redeemable Noncontrolling Interest – DaVinci RenaissanceRe owns a noncontrolling economic interest in DaVinci; however, because RenaissanceRe controls a majority of DaVinci’s outstanding voting rights, the Company consolidates DaVinci and all significant intercompany transactions have been eliminated. The portion of DaVinci’s earnings owned by third parties is recorded in the consolidated statements of operations as net income (loss) attributable to redeemable noncontrolling interests. The Company’s noncontrolling economic ownership in DaVinci was 26.3% at June 30, 2023 (December 31, 2022 - 30.9%). DaVinci shareholders are party to a shareholders agreement which provides DaVinci shareholders, excluding RenaissanceRe, with certain redemption rights that enable each shareholder to notify DaVinci of such shareholder’s desire for DaVinci to repurchase up to half of such shareholder’s initial aggregate number of shares held, subject to certain limitations, such as limiting the aggregate of all share repurchase requests to 25% of DaVinci’s capital in any given year and satisfying all applicable regulatory requirements. If total shareholder requests exceed 25% of DaVinci’s capital, the number of shares repurchased will be reduced among the requesting shareholders pro-rata, based on the amounts desired to be repurchased. Shareholders desiring to have DaVinci repurchase their shares must notify DaVinci before March 1 of each year. The repurchase price will be based on GAAP book value as of the end of the year in which the shareholder notice is given, and the repurchase will be effective as of December 31 of that year. The repurchase price can be subject to a holdback and true-up for potential development on outstanding loss reserves. Similarly, when shares are issued by DaVinci and sold to DaVinci shareholders, the sale price is based on GAAP book value as of the end of the period preceding the sale and can be subject to a true-up for potential development on outstanding loss reserves. 2023 During the six months ended June 30, 2023, DaVinci completed an equity capital raise of $250.0 million, comprised of $102.2 million from third-party investors and $147.8 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $275.0 million of its shares in DaVinci to third-party investors and purchased an aggregate of $77.5 million of shares from third-party investors. The Company’s noncontrolling economic ownership in DaVinci subsequent to these transactions was 26.3%. Refer to “Note 16. Subsequent Event” for additional information related to the Company’s noncontrolling economic ownership in DaVinci subsequent to June 30, 2023. The timing of cash flows associated with equity capital transactions can vary from one period to the next. During the six months ended June 30, 2023, RenaissanceRe received $Nil from subscriptions of shares in DaVinci by third-party investors, and paid $77.5 million as a result of redemptions of shares from third-party investors. 2022 During the six months ended June 30, 2022, DaVinci completed an equity capital raise of $500.0 million, comprised of $284.8 million from third-party investors and $215.2 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $102.9 million of its shares in DaVinci to third-party investors and purchased an aggregate of $161.6 million of shares from third-party investors. The Company’s noncontrolling economic ownership in DaVinci subsequent to these transactions was 33.8%. The Company expects its noncontrolling economic ownership in DaVinci to fluctuate over time. The activity in redeemable noncontrolling interest – DaVinci is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 2,234,541 $ 1,775,503 $ 1,740,300 $ 1,499,451 Redemption of shares from redeemable noncontrolling interests (27,320) (74,141) (77,495) (161,569) Sale of shares to redeemable noncontrolling interests, net of adjustments 700 2,493 379,034 391,296 Net income (loss) attributable to redeemable noncontrolling interest 59,527 58,822 225,609 33,499 Ending balance $ 2,267,448 $ 1,762,677 $ 2,267,448 $ 1,762,677 Redeemable Noncontrolling Interest - Medici RenaissanceRe owns a noncontrolling economic interest in Medici; however, because RenaissanceRe controls all of Medici’s issued voting shares, the Company consolidates Medici and all significant intercompany transactions have been eliminated. The portion of Medici’s earnings owned by third parties is recorded in the consolidated statements of operations as net income (loss) attributable to redeemable noncontrolling interests. Any shareholder may redeem all or any portion of its shares as of the last day of any calendar month, upon at least 30 calendar days’ prior irrevocable written notice to Medici. 2023 During the six months ended June 30, 2023, investors subscribed for $439.7 million, including $25.1 million from the Company, and redeemed $17.6 million, of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 11.1% at June 30, 2023. The timing of cash flows associated with equity capital transactions can vary from one period to the next. During the six months ended June 30, 2023, RenaissanceRe received $405.1 million from subscriptions of shares in Medici by third-party investors, and paid $17.6 million as a result of redemptions of shares from third-party investors. 2022 During the six months ended June 30, 2022, third-party investors subscribed for $325.0 million, and redeemed $97.1 million, of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 13.0% at June 30, 2022. The Company expects its noncontrolling economic ownership in Medici to fluctuate over time. The activity in redeemable noncontrolling interest – Medici is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,307,741 $ 941,912 $ 1,036,218 $ 856,820 Redemption of shares from redeemable noncontrolling interests, net of adjustments — (20,204) (17,648) (97,112) Sale of shares to redeemable noncontrolling interests 170,589 157,739 414,691 325,026 Net income (loss) attributable to redeemable noncontrolling interest 62,190 (26,887) 107,259 (32,174) Ending balance $ 1,540,520 $ 1,052,560 $ 1,540,520 $ 1,052,560 Redeemable Noncontrolling Interest – Vermeer RenaissanceRe owns 100% of the voting non-participating shares of Vermeer, while the sole third-party investor, PFZW, owns 100% of the non-voting participating shares of Vermeer and retains all of the economic benefits. Vermeer is managed by RUM in return for a management fee. The Company has concluded that Vermeer is a VIE as it has voting rights that are not proportional to its participating rights, and the Company is the primary beneficiary of Vermeer. As a result, the Company consolidates Vermeer and all significant inter-company transactions have been eliminated. As PFZW owns all of the economics of Vermeer, all of Vermeer’s earnings are allocated to PFZW in the consolidated statement of operations as net income (loss) attributable to redeemable noncontrolling interests. The Company has not provided any financial or other support to Vermeer that it was not contractually required to provide. 2023 During the six months ended June 30, 2023, there were no subscriptions for participating, non-voting common shares of Vermeer. 2022 During the six months ended June 30, 2022, PFZW subscribed for $30.0 million of the participating, non-voting common shares of Vermeer. The Company does not expect its noncontrolling economic ownership in Vermeer to fluctuate over time. The activity in redeemable noncontrolling interest – Vermeer is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,538,245 $ 1,246,480 $ 1,490,840 $ 1,197,782 Sale of shares to redeemable noncontrolling interest — — — 30,000 Net income (loss) attributable to redeemable noncontrolling interest 52,163 22,937 99,568 41,635 Ending balance $ 1,590,408 $ 1,269,417 $ 1,590,408 $ 1,269,417 Redeemable Noncontrolling Interest – Fontana RenaissanceRe owns a noncontrolling economic interest in Fontana and controls a majority of Fontana’s issued voting shares. The Company concluded that Fontana meets the definition of a VIE as the voting rights are not proportional with the obligations to absorb losses and rights to receive residual returns. The Company evaluated its relationship with Fontana and concluded it is the primary beneficiary of Fontana, as it has power over the activities that most significantly impact the economic performance of Fontana. As a result, the Company consolidates Fontana and all significant inter-company transactions have been eliminated. The portion of Fontana’s earnings owned by third parties is recorded in the consolidated statements of operations as net income (loss) attributable to redeemable noncontrolling interests. The Company may be obligated to repurchase all or a portion of the shares held by shareholders of Fontana upon request, subject to certain restrictions. The Company has not provided any financial or other support to Fontana that it was not contractually required to provide. 2023 During the six months ended June 30, 2023, there were no subscriptions or redemptions of non-voting common shares of Fontana. The Company’s noncontrolling economic ownership in Fontana was 31.6% at June 30, 2023. 2022 During the six months ended June 30, 2022, the Company launched Fontana with capital commitments of $475.0 million, of which $400.0 million was funded on April 1, 2022. Of this amount, $273.7 million was funded by third-party investors. As a result of these subscriptions, the Company’s noncontrolling economic ownership in Fontana was 31.6% at June 30, 2022. The Company’s investment in Fontana may fluctuate, perhaps materially, in future quarters. The activity in redeemable noncontrolling interest – Fontana is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 276,859 $ — $ 268,031 $ — Sale of shares to redeemable noncontrolling interest — 273,684 — 273,684 Net income (loss) attributable to redeemable noncontrolling interest 1,027 (5,541) 9,855 (5,541) Ending balance $ 277,886 $ 268,143 $ 277,886 $ 268,143 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Upsilon RFO RenaissanceRe indirectly owns a portion of the participating non-voting preference shares of Upsilon RFO and all of Upsilon RFO’s voting Class A shares. The shareholders (other than the voting Class A shareholder) participate in all of the profits or losses of Upsilon RFO while their shares remain outstanding. The shareholders (other than the voting Class A shareholder) indemnify Upsilon RFO against losses relating to insurance risk, and therefore, these shares have been accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance . Upsilon RFO is considered a VIE as it has insufficient equity capital to finance its activities without additional financial support. The Company is the primary beneficiary of Upsilon RFO as it has the power over the activities that most significantly impact the economic performance of Upsilon RFO and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to Upsilon RFO, in accordance with the accounting guidance. As a result, the Company consolidates Upsilon RFO and all significant inter-company transactions have been eliminated. Other than its equity investment in Upsilon RFO, the Company has not provided financial or other support to Upsilon RFO that it was not contractually required to provide. 2023 During the six months ended June 30, 2023 and following the release of collateral that was previously held by cedants associated with prior years’ contracts, Upsilon RFO returned $489.6 million of capital to investors, including $62.3 million to the Company. Also during the six months ended June 30, 2023, Upsilon RFO issued $39.8 million of non-voting preference shares to existing investors, including $10.2 million to the Company. At June 30, 2023, the Company’s participation in the risks assumed by Upsilon RFO was 13.1%. At June 30, 2023, the Company’s consolidated balance sheet included total assets and total liabilities of Upsilon RFO of $3.0 billion and $3.0 billion, respectively (December 31, 2022 - $3.7 billion and $3.7 billion, respectively). Of the total assets and liabilities, a net amount of $133.2 million (December 31, 2022 - $165.3 million) is attributable to the Company, and $0.9 billion (December 31, 2022 - $1.2 billion) is attributable to third-party investors. 2022 During the six months ended June 30, 2022, $89.0 million of Upsilon RFO non-voting preference shares were issued to existing investors, including $10.0 million to the Company. In addition, during the six months ended June 30, 2022 and following the release of collateral that was previously held by cedants associated with prior years’ contracts, Upsilon RFO returned $188.1 million of capital to its investors. At June 30, 2022, the Company’s participation in the risks assumed by Upsilon RFO was 12.7%. Upsilon Diversified RenaissanceRe Upsilon Diversified Fund (“Upsilon Diversified”) is a segregated account of Upsilon Fund, and provides a fund structure through which investors can invest in reinsurance risk managed by the Company, which includes investments in Upsilon RFO and Medici. The Company concluded that Upsilon Diversified meets the definition of a VIE as the voting rights are not proportional with the obligations to absorb losses and rights to receive residual returns. The Company evaluated its relationship with Upsilon Diversified and concluded it is not the primary beneficiary of Upsilon Diversified, as it does not have the obligation to absorb expected losses and the right to receive expected benefits that could be significant to Upsilon Diversified, in accordance with the accounting guidance. As a result, the Company does not consolidate the financial position or results of operations of Upsilon Diversified. Upsilon Diversified meets the definition of an investment company in accordance with accounting guidance, and accordingly, is required to account for all of its investments, including its investments in Upsilon RFO and Medici, at fair value. The Company does not have, has not previously had, and does not expect to have, a material investment in Upsilon Diversified. In addition, the Company expects its absolute and relative ownership in Upsilon Diversified to remain minimal. Other than its current equity investment in Upsilon Diversified, the Company has not provided financial or other support to Upsilon Diversified that it was not contractually required to provide. The total assets of Upsilon Diversified principally reflect its investment in Upsilon RFO. 2023 During the six months ended June 30, 2023 and following the release of collateral from Upsilon RFO, Upsilon Diversified returned $420.8 million of capital to investors, including $0.7 million to the Company. Also during the six months ended June 30, 2023, Upsilon Diversified issued $30.0 million of non-voting preference shares to existing investors, including $0.1 million from the Company. The fair value of the Company’s indirect equity ownership in Upsilon Diversified is included in investments in other ventures and was $1.4 million at June 30, 2023 (December 31, 2022 - $1.9 million). At June 30, 2023, the total assets and total liabilities of Upsilon Diversified were $956.3 million and $78.8 million, respectively (December 31, 2022 - $1.2 billion and $32.1 million, respectively). Upsilon Diversified’s investment in Upsilon RFO was valued at $952.4 million at June 30, 2023 (December 31, 2022 - $1.2 billion). 2022 During the six months ended June 30, 2022 and following the release of collateral from Upsilon RFO, Upsilon Diversified returned $143.5 million of capital to investors, including $Nil to the Company. Also during the six months ended June 30, 2022, Upsilon Diversified issued $82.5 million of non-voting preference shares to existing investors, including $Nil to the Company. NOC1 NOC1 is a segregated account of Upsilon Fund formed in the second quarter of 2023, that provides a fund structure through which investors can invest in a portfolio of insurance-linked securities, principally catastrophe bonds. The Company concluded that NOC1 meets the definition of a VIE as the voting rights are not proportional with the obligations to absorb losses and rights to receive residual returns. The Company evaluated its relationship with NOC1 and concluded it is not the primary beneficiary of NOC1, as it does not have the obligation to absorb expected losses and the right to receive expected benefits that could be significant to NOC1, in accordance with the accounting guidance. As a result, the Company does not consolidate the financial position or results of operations of NOC1. The Company does not have, and does not expect to have, a material investment in NOC 1 and expects its absolute and relative ownership in NOC1 to remain minimal. Other than its current equity investment in NOC1, the Company has not provided financial or other support to NOC1 that it was not contractually required to provide. 2023 During the six months ended June 30, 2023, NOC1 issued $151.5 million of non-voting preference shares to existing investors, including $1.5 million to the Company. The fair value of the Company’s indirect equity ownership in NOC1 is included in investments in other ventures and was $1.5 million at June 30, 2023. At June 30, 2023, the total assets and total liabilities of NOC1 were $153.1 million and $0.2 million, respectively. Vermeer Vermeer provides capacity focused on risk remote layers in the U.S. property catastrophe market. Refer to “Note 8. Noncontrolling Interests” for additional information regarding Vermeer. At June 30, 2023, the Company’s consolidated balance sheet included total assets and total liabilities of Vermeer of $2.0 billion and $388.7 million, respectively (December 31, 2022 - $1.6 billion and $144.9 million, respectively). In addition, the Company’s consolidated balance sheet included redeemable noncontrolling interests associated with Vermeer of $1.6 billion at June 30, 2023 (December 31, 2022 - $1.5 billion). Fontana Fontana provides reinsurance capacity focused on business written within the Company’s Casualty and Specialty segment. Refer to “Note 8. Noncontrolling Interests” for additional information regarding Fontana. At June 30, 2023, the Company’s consolidated balance sheet included total assets and total liabilities of Fontana of $1.1 billion and $733.8 million, respectively (December 31, 2022 - $711.0 million and $319.2 million, respectively). In addition, the Company’s consolidated balance sheet included redeemable noncontrolling interests associated with Fontana of $277.9 million at June 30, 2023 (December 31, 2022 - $268.0 million). Mona Lisa Re Ltd. Mona Lisa Re provides reinsurance capacity to subsidiaries of RenaissanceRe through reinsurance agreements which are collateralized and funded by Mona Lisa Re through the issuance of one or more series of principal-at-risk variable rate notes to third-party investors. Upon issuance of a series of notes by Mona Lisa Re, all of the proceeds from the issuance are deposited into collateral accounts, separated by series, to fund any potential obligation under the reinsurance agreements entered into with Renaissance Reinsurance and/or DaVinci Reinsurance underlying such series of notes. The outstanding principal amount of each series of notes generally will be returned to holders of such notes upon the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes, in which case the amount returned will be reduced by such noteholder’s pro rata share of such loss, as specified in the applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable quarterly, as determined by the applicable governing documents of each series of notes. The Company concluded that Mona Lisa Re meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company evaluated its relationship with Mona Lisa Re and concluded it is not the primary beneficiary of Mona Lisa Re as it does not have the power over the activities that most significantly impact the economic performance of Mona Lisa Re, in accordance with the accounting guidance. As a result, the financial position and results of operations of Mona Lisa Re are not consolidated by the Company. The only transactions related to Mona Lisa Re that are recorded in the Company’s consolidated financial statements are the ceded reinsurance agreements entered into by Renaissance Reinsurance and DaVinci Reinsurance which are accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance , and the fair value of the principal-at-risk variable rate notes owned by the Company. Other than its investment in the principal-at-risk variable rate notes of Mona Lisa Re, the Company has not provided financial or other support to Mona Lisa Re that it was not contractually required to provide. Renaissance Reinsurance and DaVinci Reinsurance have together entered into ceded reinsurance contracts with Mona Lisa Re with ceded premiums written of $18.3 million and $4.6 million, respectively, during the six months ended June 30, 2023 (2022 - $25.1 million and $6.2 million, respectively). In addition, Renaissance Reinsurance and DaVinci Reinsurance recognized ceded premiums earned related to the ceded reinsurance contracts with Mona Lisa Re of $16.0 million and $4.0 million, respectively, during the six months ended June 30, 2023 (2022 - $19.5 million and $4.8 million, respectively). Effective January 10, 2023, Mona Lisa Re issued two series of principal-at-risk variable rate notes to investors for principal amounts of $85.0 million and $100.0 million. Also during the six months ended June 30, 2023, Mona Lisa Re redeemed its Series 2020-1 principal-at-risk variable rate notes at their par value of $400.0 million, of which $16.5 million was returned to Medici. At June 30, 2023, the total assets and total liabilities of Mona Lisa Re were $463.5 million and $463.5 million, respectively (December 31, 2022 - $654.8 million and $654.8 million, respectively). The fair value of the Company’s investment in the principal-at-risk variable rate notes of Mona Lisa Re is included in other investments. Net of third-party investors, the fair value of the Company’s investment in Mona Lisa Re was $3.3 million at June 30, 2023 (December 31, 2022 - $5.7 million). Fibonacci Re Fibonacci Re provides collateralized capacity to Renaissance Reinsurance and its affiliates. The Company concluded that Fibonacci Re meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company evaluated its relationship with Fibonacci Re and concluded it is not the primary beneficiary of Fibonacci Re as it does not have power over the activities that most significantly impact the economic performance of Fibonacci Re. As a result, the Company does not consolidate the financial position or results of operations of Fibonacci Re. The Company has not provided financial or other support to Fibonacci Re that it was not contractually required to provide. Renaissance Reinsurance had no outstanding balances with Fibonacci Re as of June 30, 2023 and December 31, 2022, and there was no material impact on the Company’s consolidated statements of operations for the six months ended June 30, 2023 and 2022. Langhorne The Company and Reinsurance Group of America formed Langhorne, an initiative to source third-party capital to support reinsurers targeting large in-force life and annuity blocks. In connection with Langhorne, as of June 30, 2023, the Company had invested $0.1 million in Langhorne Partners (December 31, 2022 - $0.1 million). Langhorne’s capital commitment period expired at the end of December 2022 and the Langhorne entities are in the process of winding down. During the first quarter of 2023, the reinsurance entities of Langhorne Holdings were sold or dissolved, and all capital of Langhorne Holdings was distributed, including $1.5 million to the Company. Langhorne Partners is in the process of being dissolved, and distributed all remaining capital in July 2023, including $0.8 million to the Company. The Company concluded that Langhorne Holdings meets the definition of a VIE as the voting rights are not proportional with the obligations to absorb losses and rights to receive residual returns. The Company evaluated its relationship with Langhorne Holdings and concluded it is not the primary beneficiary of Langhorne Holdings, as it does not have power over the activities that most significantly impact the economic performance of Langhorne Holdings. As a result, the Company does not consolidate the financial position or results of operations of Langhorne Holdings. The Company separately evaluated Langhorne Partners and concluded that it was not a VIE. The Company accounts for its investments in Langhorne Holdings and Langhorne Partners under the equity method of accounting, one quarter in arrears. The Company expects its absolute and relative ownership in Langhorne Partners to remain stable until the wind down concludes. Other than its current equity investment in Langhorne, the Company has not provided financial or other support to Langhorne that it was not contractually required to provide. Shima Re Shima Re was acquired on March 22, 2019 in connection with the acquisition of TMR. Shima Re is a Bermuda domiciled Class 3 insurer. Shima Re is registered as a segregated accounts company and provides third-party investors with access to reinsurance risk. The maximum remaining exposure of each segregated account is fully collateralized and is funded by cash or investments as prescribed by the participant thereto. Shima Re no longer writes new business and the last in-force contract written by Shima Re expired on December 31, 2019. The Company ceased providing management services to Shima Re effective December 1, 2020. Shima Re is considered a VIE as it has voting rights that are not proportional to its participating rights. The Company evaluated its relationship with Shima Re and concluded it is not the primary beneficiary of any segregated account, as it does not have power over the activities that most significantly impact the economic performance of any segregated account. As a result, the Company does not consolidate the financial position or results of operations of Shima Re or its segregated accounts. The Company has not provided any financial or other support to any segregated account of Shima Re that it was not contractually required to provide. Norwood Re Until December 1, 2020, Norwood Re was managed by a subsidiary of RREAG that the Company acquired in the acquisition of TMR. Norwood Re is a Bermuda domiciled special purpose insurer registered as a segregated accounts company formed to provide solutions for reinsurance-linked asset investors. Norwood Re is wholly owned by the Norwood Re Purpose Trust. Risks assumed by the segregated accounts of Norwood Re were fronted by, or ceded from, only one cedant - RREAG and/or its insurance affiliates. The obligations of each segregated account are funded through the issuance of non-voting preference shares to third-party investors. The maximum exposure of each segregated account is fully collateralized and is funded by cash and term deposits or investments as prescribed by the participant thereto. Norwood Re no longer writes new business, and the last in-force contract written by Norwood Re expired on June 30, 2020. The Company ceased providing management services to Norwood Re effective December 1, 2020. Norwood Re is considered a VIE as it has voting rights that are not proportional to its participating rights. The Company evaluated its relationship with Norwood Re and concluded it is not the primary beneficiary of Norwood Re and its segregated accounts, as it does not have power over the activities that most significantly impact the economic performance of Norwood Re and its segregated accounts. As a result, the Company does not consolidate the financial position or results of operations of Norwood Re and its segregated accounts. The Company has not provided any financial or other support to Norwood Re that it was not contractually required to provide. Fund Investments The Company’s fund investments represent variable interests in limited partnerships entities with unaffiliated fund managers in the normal course of business. Refer to “Note 4. Fair Value Measurements” for additional information. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY Dividends The Board of Directors of RenaissanceRe declared quarterly dividends of $0.38 per common share, payable to common shareholders of record on March 15, 2023 and June 15, 2023, and the Company paid the dividends on March 31, 2023 and June 30, 2023. The Board of Directors approved the payment of quarterly dividends on each of the series of RenaissanceRe’s preference shares to preference shareholders of record in the amounts and on the quarterly record dates and dividend payment dates set forth in the prospectus supplement and Certificate of Designation for the applicable series of preference shares, unless and until further action is taken by the Board of Directors. The dividend payment dates for the preference shares will be the first day of March, June, September and December of each year (or if this date is not a business day, on the business day immediately following this date). The record dates for the preference share dividends are one day prior to the dividend payment dates. The amount of the dividend on the 5.750% Series F Preference Shares is an amount per share equal to 5.750% of the liquidation preference per annum (the equivalent to $1,437.50 per 5.750% Series F Preference Share per annum, or $359.375 per 5.750% Series F Preference Share per quarter, or $1.4375 per Depositary Share per annum, or $0.359375 per Depositary Share per quarter). The amount of the dividend on the 4.20% Series G Preference Shares is an amount per share equal to 4.20% of the liquidation preference per annum (the equivalent to $1,050 per 4.20% Series G Preference Share per annum, or $262.50 per 4.20% Series G Preference Share per quarter, or $1.05 per Depositary Share per annum, or $0.2625 per quarter). During the six months ended June 30, 2023, the Company paid $17.7 million in preference share dividends (2022 - $17.7 million) and $36.0 million in common share dividends (2022 - $32.4 million). Common Shares On May 26, 2023, the Company completed an offering of 7,245,000 of its common shares at the public offering price of $192.00 per share. The Company received net proceeds of approximately $1,352 million from the equity offering after deducting the underwriting discounts and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from this offering to fund a portion of the cash consideration for the Validus Acquisition, to pay related costs and expenses, and for general corporate purposes. See “Note 15. Acquisition of Validus” for additional information regarding the Validus Acquisition. Share Repurchases The Company’s share repurchase program may be effected from time to time, depending on market conditions and other factors, through open market purchases and privately negotiated transactions. On August 2, 2022, RenaissanceRe’s Board of Directors approved a renewal of its authorized share repurchase program for an aggregate amount of up to $500.0 million. Unless terminated earlier by RenaissanceRe’s Board of Directors, the program will expire when the Company has repurchased the full value of the common shares authorized. During the six months ended June 30, 2023, the Company did not repurchase common shares. At June 30, 2023, $500.0 million remained available for repurchase under the share repurchase program. In the future, the Company may authorize additional purchase activities under the currently authorized share repurchase program, increase the amount authorized under the share repurchase program, or adopt additional trading plans. The Company’s decision to repurchase common shares will depend on, among other matters, the market price of the common shares and the capital requirements of the Company. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Six months ended (common shares in thousands) June 30, June 30, June 30, June 30, Numerator: Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326) Amount allocated to participating common shareholders (1) (2,889) (272) (11,650) (507) Net income (loss) allocated to RenaissanceRe common shareholders $ 188,136 $ (325,185) $ 743,437 $ (719,833) Denominator: Denominator for basic income (loss) per RenaissanceRe common share - weighted average common shares (2) 45,898 43,170 44,387 43,264 Per common share equivalents of non-vested shares (2) 92 — 111 — Denominator for diluted income (loss) per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions (2) 45,990 43,170 44,498 43,264 Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic $ 4.10 $ (7.53) $ 16.75 $ (16.64) Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64) (1) Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company’s stock compensation plans. (2) In periods for which the Company has net loss allocated to RenaissanceRe common shareholders, the denominator used in calculating net loss attributable to RenaissanceRe common shareholders per common share - basic is also used in calculating net loss attributable to RenaissanceRe common shareholders per common share - diluted. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s reportable segments are defined as follows: (1) Property, which is comprised of catastrophe and other property (re)insurance written on behalf of the Company’s consolidated operating subsidiaries, joint ventures and managed funds, and (2) Casualty and Specialty, which is comprised of casualty and specialty (re)insurance written on behalf of the Company’s consolidated operating subsidiaries, joint ventures and managed funds. In addition to its reportable segments, the Company has an Other category, which primarily includes its investments unit, strategic investments, corporate expenses, capital servicing costs, noncontrolling interests and certain expenses related to acquisitions and dispositions. The Company does not manage its assets by segment; accordingly, net investment income and total assets are not allocated to the segments. A summary of the significant components of the Company’s revenues and expenses by segment is as follows: Three months ended June 30, 2023 Property Casualty and Specialty Other Total Gross premiums written $ 1,402,606 $ 1,249,015 $ — $ 2,651,621 Net premiums written $ 1,144,655 $ 1,051,148 $ — $ 2,195,803 Net premiums earned $ 758,686 $ 1,026,576 $ — $ 1,785,262 Net claims and claim expenses incurred 281,993 649,218 — 931,211 Acquisition expenses 140,606 281,939 — 422,545 Operational expenses 55,077 25,414 — 80,491 Underwriting income (loss) $ 281,010 $ 70,005 $ — 351,015 Net investment income 292,662 292,662 Net foreign exchange gains (losses) (13,488) (13,488) Equity in earnings of other ventures 7,700 7,700 Other income (loss) 3,876 3,876 Net realized and unrealized gains (losses) on investments (222,781) (222,781) Corporate expenses (23,371) (23,371) Interest expense (14,895) (14,895) Income (loss) before taxes and redeemable noncontrolling interests 380,718 Income tax benefit (expense) (5,942) (5,942) Net (income) loss attributable to redeemable noncontrolling interests (174,907) (174,907) Dividends on preference shares (8,844) (8,844) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 Net claims and claim expenses incurred – current accident year $ 313,632 $ 649,677 $ — $ 963,309 Net claims and claim expenses incurred – prior accident years (31,639) (459) — (32,098) Net claims and claim expenses incurred – total $ 281,993 $ 649,218 $ — $ 931,211 Net claims and claim expense ratio – current accident year 41.3 % 63.3 % 54.0 % Net claims and claim expense ratio – prior accident years (4.1) % (0.1) % (1.8) % Net claims and claim expense ratio – calendar year 37.2 % 63.2 % 52.2 % Underwriting expense ratio 25.8 % 30.0 % 28.1 % Combined ratio 63.0 % 93.2 % 80.3 % Six months ended June 30, 2023 Property Casualty and Specialty Other Total Gross premiums written $ 2,706,805 $ 2,735,077 $ — $ 5,441,882 Net premiums written $ 2,164,484 $ 2,295,022 $ — $ 4,459,506 Net premiums earned $ 1,446,106 $ 2,019,706 $ — $ 3,465,812 Net claims and claim expenses incurred 469,602 1,262,809 — 1,732,411 Acquisition expenses 285,925 568,877 — 854,802 Operational expenses 110,890 47,075 — 157,965 Underwriting income (loss) $ 579,689 $ 140,945 $ — 720,634 Net investment income 547,040 547,040 Net foreign exchange gains (losses) (27,991) (27,991) Equity in earnings of other ventures 17,230 17,230 Other income (loss) (430) (430) Net realized and unrealized gains (losses) on investments 56,670 56,670 Corporate expenses (36,214) (36,214) Interest expense (27,029) (27,029) Income (loss) before taxes and redeemable noncontrolling interests 1,249,910 Income tax benefit (expense) (34,844) (34,844) Net (income) loss attributable to redeemable noncontrolling interests (442,291) (442,291) Dividends on preference shares (17,688) (17,688) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 755,087 Net claims and claim expenses incurred – current accident year $ 582,934 $ 1,286,327 $ — $ 1,869,261 Net claims and claim expenses incurred – prior accident years (113,332) (23,518) — (136,850) Net claims and claim expenses incurred – total $ 469,602 $ 1,262,809 $ — $ 1,732,411 Net claims and claim expense ratio – current accident year 40.3 % 63.7 % 53.9 % Net claims and claim expense ratio – prior accident years (7.8) % (1.2) % (3.9) % Net claims and claim expense ratio – calendar year 32.5 % 62.5 % 50.0 % Underwriting expense ratio 27.4 % 30.5 % 29.2 % Combined ratio 59.9 % 93.0 % 79.2 % Three months ended June 30, 2022 Property Casualty and Specialty Other Total Gross premiums written $ 1,218,321 $ 1,246,318 $ — $ 2,464,639 Net premiums written $ 887,975 $ 975,641 $ — $ 1,863,616 Net premiums earned $ 623,581 $ 832,802 $ — $ 1,456,383 Net claims and claim expenses incurred 171,924 534,315 — 706,239 Acquisition expenses 137,567 223,671 — 361,238 Operational expenses 49,627 22,893 — 72,520 Underwriting income (loss) $ 264,463 $ 51,923 $ — 316,386 Net investment income 107,211 107,211 Net foreign exchange gains (losses) (50,821) (50,821) Equity in earnings of other ventures 7,383 7,383 Other income (loss) 923 923 Net realized and unrealized gains (losses) on investments (654,107) (654,107) Corporate expenses (12,352) (12,352) Interest expense (11,895) (11,895) Income (loss) before taxes and redeemable noncontrolling interests (297,272) Income tax benefit (expense) 30,534 30,534 Net (income) loss attributable to redeemable noncontrolling interests (49,331) (49,331) Dividends on preference shares (8,844) (8,844) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ (324,913) Net claims and claim expenses incurred – current accident year $ 206,976 $ 542,220 $ — $ 749,196 Net claims and claim expenses incurred – prior accident years (35,052) (7,905) — (42,957) Net claims and claim expenses incurred – total $ 171,924 $ 534,315 $ — $ 706,239 Net claims and claim expense ratio – current accident year 33.2 % 65.1 % 51.4 % Net claims and claim expense ratio – prior accident years (5.6) % (0.9) % (2.9) % Net claims and claim expense ratio – calendar year 27.6 % 64.2 % 48.5 % Underwriting expense ratio 30.0 % 29.6 % 29.8 % Combined ratio 57.6 % 93.8 % 78.3 % Six months ended June 30, 2022 Property Casualty and Specialty Other Total Gross premiums written $ 2,561,829 $ 2,845,774 $ — $ 5,407,603 Net premiums written $ 1,778,141 $ 2,250,692 $ — $ 4,028,833 Net premiums earned $ 1,242,172 $ 1,700,636 $ — $ 2,942,808 Net claims and claim expenses incurred 431,685 1,116,287 — 1,547,972 Acquisition expenses 264,663 473,082 — 737,745 Operational expenses 96,559 43,868 — 140,427 Underwriting income (loss) $ 449,265 $ 67,399 $ — 516,664 Net investment income 190,902 190,902 Net foreign exchange gains (losses) (66,307) (66,307) Equity in earnings of other ventures 993 993 Other income (loss) 2,116 2,116 Net realized and unrealized gains (losses) on investments (1,327,124) (1,327,124) Corporate expenses (24,854) (24,854) Interest expense (23,850) (23,850) Income (loss) before taxes and redeemable noncontrolling interests (731,460) Income tax benefit (expense) 67,241 67,241 Net (income) loss attributable to redeemable noncontrolling interests (37,419) (37,419) Dividends on preference shares (17,688) (17,688) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ (719,326) Net claims and claim expenses incurred – current accident year $ 483,495 $ 1,125,267 $ — $ 1,608,762 Net claims and claim expenses incurred – prior accident years (51,810) (8,980) — (60,790) Net claims and claim expenses incurred – total $ 431,685 $ 1,116,287 $ — $ 1,547,972 Net claims and claim expense ratio – current accident year 38.9 % 66.2 % 54.7 % Net claims and claim expense ratio – prior accident years (4.1) % (0.6) % (2.1) % Net claims and claim expense ratio – calendar year 34.8 % 65.6 % 52.6 % Underwriting expense ratio 29.0 % 30.4 % 29.8 % Combined ratio 63.8 % 96.0 % 82.4 % |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Derivative Instruments [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS From time to time, the Company may enter into derivative instruments such as futures, options, swaps, forward contracts and other derivative contracts primarily to manage its foreign currency exposure, obtain exposure to a particular financial market, for yield enhancement, or for trading and to assume risk. The Company’s derivative instruments can be exchange traded or over-the-counter, with over-the-counter derivatives generally traded under International Swaps and Derivatives Association master agreements, which establish the terms of the transactions entered into with the Company’s derivative counterparties. In the event a party becomes insolvent or otherwise defaults on its obligations, a master agreement generally permits the non-defaulting party to accelerate and terminate all outstanding transactions and net the transactions’ marked-to-market values so that a single sum in a single currency will be owed by, or owed to, the non-defaulting party. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions are generally netted by counterparty and are reported accordingly in other assets and other liabilities. The Company is not aware of the existence of any credit-risk related contingent features that it believes would be triggered in its derivative instruments that are in a net liability position at June 30, 2023. The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments: Derivative Assets At June 30, 2023 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Received Net Amount Derivative instruments not designated as hedges Interest rate futures $ 370 $ — $ 370 Other assets $ — $ 370 Foreign currency forward contracts (1) 24,119 — 24,119 Other assets — 24,119 Foreign currency forward contracts (2) 78 — 78 Other assets — 78 Credit default swaps 121 — 121 Other assets — 121 Total derivative instruments not designated as hedges 24,688 — 24,688 — 24,688 Derivative instruments designated as hedges Foreign currency forward contracts (3) 619 — 619 Other assets — 619 Total $ 25,307 $ — $ 25,307 $ — $ 25,307 Derivative Liabilities At June 30, 2023 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Derivative instruments not designated as hedges Interest rate futures $ 2,113 $ — $ 2,113 Other liabilities $ 2,045 $ 68 Foreign currency forward contracts (1) 4,027 — 4,027 Other liabilities — 4,027 Foreign currency forward contracts (2) 2,998 — 2,998 Other liabilities — 2,998 Credit default swaps 5,851 — 5,851 Other liabilities 5,851 — Total derivative instruments not designated as hedges 14,989 — 14,989 7,896 7,093 Total $ 14,989 $ — $ 14,989 $ 7,896 $ 7,093 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. (3) Contracts designated as hedges of net investments in a foreign operation. Derivative Assets At December 31, 2022 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Received Net Amount Derivative instruments not designated as hedges Interest rate futures $ 387 $ — $ 387 Other assets $ — $ 387 Foreign currency forward contracts (1) 31,755 — 31,755 Other assets — 31,755 Foreign currency forward contracts (2) 11,866 — 11,866 Other assets — 11,866 Credit default swaps 413 — 413 Other assets — 413 Total derivative instruments not designated as hedges 44,421 — 44,421 — 44,421 Total $ 44,421 $ — $ 44,421 $ — $ 44,421 Derivative Liabilities At December 31, 2022 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Derivative instruments not designated as hedges Interest rate futures $ 1,685 $ — $ 1,685 Other liabilities $ 209 $ 1,476 Foreign currency forward contracts (1) 1,160 — 1,160 Other liabilities — 1,160 Foreign currency forward contracts (2) 2,165 — 2,165 Other liabilities — 2,165 Credit default swaps 1,055 — 1,055 Other liabilities 100 955 Equity futures 323 — 323 Other liabilities — 323 Total derivative instruments not designated as hedges 6,388 — 6,388 309 6,079 Derivative instruments designated as hedges Foreign currency forward contracts (3) 1,193 — 1,193 Other liabilities — 1,193 Total $ 7,581 $ — $ 7,581 $ 309 $ 7,272 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. (3) Contracts designated as hedges of net investments in a foreign operation. The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table: Location of gain (loss) Amount of gain (loss) recognized on Three months ended June 30, 2023 2022 Derivative instruments not designated as hedges Interest rate futures (1) Net realized and unrealized gains (losses) on investments $ (47,030) $ (14,699) Foreign currency forward contracts (2) Net foreign exchange gains (losses) 4,900 (51,834) Foreign currency forward contracts (3) Net foreign exchange gains (losses) (11,111) 10,062 Foreign currency option contracts Net foreign exchange gains (losses) — (225) Credit default swaps (1) Net realized and unrealized gains (losses) on investments (17,460) (2,337) Equity futures (4) Net realized and unrealized gains (losses) on investments (561) (49,042) Total derivative instruments not designated as hedges (71,262) (108,075) Derivative instruments designated as hedges Foreign currency forward contracts (5) Accumulated other comprehensive income (loss) 591 7,321 Total $ (70,671) $ (100,754) Location of gain (loss) Amount of gain (loss) recognized on Six months ended June 30, 2023 2022 Derivative instruments not designated as hedges Interest rate futures (1) Net realized and unrealized gains (losses) on investments $ (21,547) $ (43,486) Foreign currency forward contracts (2) Net foreign exchange gains (losses) 9,645 (72,757) Foreign currency forward contracts (3) Net foreign exchange gains (losses) (14,791) 8,171 Foreign currency option contracts Net foreign exchange gains (losses) — (444) Credit default swaps (1) Net realized and unrealized gains (losses) on investments (29,414) (6,474) Equity futures (4) Net realized and unrealized gains (losses) on investments (1,928) (56,406) Total derivative instruments not designated as hedges (58,035) (171,396) Derivative instruments designated as hedges Foreign currency forward contracts (5) Accumulated other comprehensive income (loss) 1,539 4,294 Total $ (56,496) $ (167,102) (1) Fixed income related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information. (2) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (3) Contracts used to manage foreign currency risks in investment operations. (4) Equity related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information. (5) Contracts designated as hedges of net investments in a foreign operation. Derivative Instruments Not Designated as Hedges Interest Rate Derivatives The Company uses interest rate futures and swaps within its portfolio of fixed maturity investments to manage its exposure to interest rate risk, which may result in increasing or decreasing its exposure to this risk. Interest Rate Futures The fair value of interest rate futures is determined using exchange traded prices. At June 30, 2023, the Company had $2.6 billion of notional long positions and $0.7 billion of notional short positions of primarily U.S. treasury and Japanese Yen futures contracts (December 31, 2022 - $2.4 billion and $0.5 billion, respectively, primarily of U.S. treasury futures contracts). Foreign Currency Derivatives The Company’s functional currency is the U.S. dollar. The Company writes a portion of its business in currencies other than U.S. dollars and may, from time to time, experience foreign exchange gains and losses in the Company’s consolidated financial statements. The impact of changes in exchange rates on the Company’s assets and liabilities denominated in currencies other than the U.S. dollar, excluding non-monetary assets and liabilities, are recognized in the Company’s consolidated statements of operations. Underwriting and Non-investments Operations Related Foreign Currency Contracts The Company’s foreign currency policy with regard to its underwriting operations is generally to enter into foreign currency forward and option contracts for notional values that approximate the foreign currency liabilities, including claims and claim expense reserves and reinsurance balances payable, net of any cash, investments and receivables held in the respective foreign currency. The Company’s use of foreign currency forward and option contracts is intended to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities associated with its underwriting operations. The Company may determine not to match a portion of its projected underwriting related assets or liabilities with underlying foreign currency exposure with investments in the same currencies, which would increase its exposure to foreign currency fluctuations and potentially increase the impact and volatility of foreign exchange gains and losses on its results of operations. The fair value of the Company’s underwriting operations related foreign currency contracts is determined using indicative pricing obtained from counterparties or broker quotes. At June 30, 2023, the Company had outstanding underwriting related foreign currency contracts of $845.2 million in notional long positions and $183.2 million in notional short positions, denominated in U.S. dollars (December 31, 2022 - $861.7 million and $172.4 million, respectively). Investment Portfolio Related Foreign Currency Forward Contracts The Company’s investment operations are exposed to currency fluctuations through its investments in non-U.S. dollar fixed maturity investments, short term investments and other investments. From time to time, the Company may employ foreign currency forward contracts in its investment portfolio to either assume foreign currency risk or to economically hedge its exposure to currency fluctuations from these investments. The fair value of the Company’s investment portfolio related foreign currency forward contracts is determined using an interpolated rate based on closing forward market rates. At June 30, 2023, the Company had outstanding investment portfolio related foreign currency contracts of $383.2 million in notional long positions and $98.7 million in notional short positions, denominated in U.S. dollars (December 31, 2022 - $225.6 million and $86.3 million, respectively). Credit Derivatives The Company’s exposure to credit risk is primarily due to its fixed maturity investments, short term investments, premiums receivable and reinsurance recoverable. From time to time, the Company may purchase credit derivatives to manage its exposures in the insurance industry, and to assist in managing the credit risk associated with ceded reinsurance. The Company also employs credit derivatives in its investment portfolio to either assume credit risk or manage its credit exposure. Credit Default Swaps The fair value of the Company’s credit default swaps is determined using industry valuation models, broker bid indications or internal pricing valuation techniques. The fair value of these credit default swaps can change based on a variety of factors including changes in credit spreads, default rates and recovery rates, the correlation of credit risk between the referenced credit and the counterparty, and market rate inputs such as interest rates. At June 30, 2023, the Company had outstanding credit default swaps of $1.0 billion in notional positions to hedge credit risk and $14.5 million in notional positions to assume credit risk, denominated in U.S. dollars (December 31, 2022 - $953.4 million and $13.1 million, respectively). Equity Derivatives Equity Futures From time to time, the Company uses equity derivatives in its investment portfolio to either assume equity risk or hedge its equity exposure. The fair value of the Company’s equity futures is determined using market-based prices from pricing vendors. At June 30, 2023, the Company had no notional positions of equity futures, denominated in U.S. dollars (December 31, 2022 - $116.0 million notional long position). Derivative Instruments Designated as Hedges of Net Investments in Foreign Operations Foreign Currency Derivatives Hedges of Net Investments in Foreign Operations One of the Company’s subsidiaries currently uses a non-U.S. dollar functional currency. The Company, from time to time, enters into foreign exchange forwards to hedge non-U.S. dollar functional currencies, on an after-tax basis, from changes in the exchange rate between the U.S. dollar and these currencies. As of June 30, 2023 and 2022, this included the Australian dollar net investment in a foreign operation. These foreign exchange forward contracts were formally designated as hedges of its investment in subsidiaries with non-U.S. dollar functional currencies and there was no ineffectiveness in these transactions. The table below provides a summary of derivative instruments designated as hedges of net investments in a foreign operation, including the weighted average U.S. dollar equivalent of foreign denominated net (liabilities) assets that were hedged and the resulting derivative gains (losses) that are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive income (loss) on the Company’s consolidated statements of changes in shareholders’ equity: Three months ended Six months ended June 30, June 30, June 30, June 30, Weighted average of U.S. dollar equivalent of foreign denominated net assets (liabilities) $ 59,020 $ 79,933 $ 59,348 $ 83,769 Derivative gains (losses) (1) $ 591 $ 7,321 $ 1,539 $ 4,294 (1) Derivative gains (losses) from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive income (loss) on the Company’s consolidated statements of changes in shareholders’ equity. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND OTHER ITEMS | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER ITEMS | COMMITMENTS, CONTINGENCIES AND OTHER ITEMS There are no material changes from the commitments, contingencies and other items previously disclosed in the Company’s Form 10-K for the year ended December 31, 2022. Legal Proceedings The Company and its subsidiaries are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on reinsurance treaties or contracts or direct surplus lines insurance policies. In the Company’s industry, business litigation may involve allegations of underwriting or claims-handling errors or misconduct, disputes relating to the scope of, or compliance with, the terms of delegated underwriting agreements, employment claims, regulatory actions or disputes arising from the Company’s business ventures. The Company’s operating subsidiaries are subject to claims litigation involving, among other things, disputed interpretations of policy coverages. Generally, the Company’s direct surplus lines insurance operations are subject to greater frequency and diversity of claims and claims-related litigation than its reinsurance operations and, in some jurisdictions, may be subject to direct actions by allegedly injured persons or entities seeking damages from policyholders. These lawsuits, involving or arising out of claims on policies issued by the Company’s subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in its loss and loss expense reserves. In addition, the Company may from time to time engage in litigation or arbitration related to its claims for payment in respect of ceded reinsurance, including disputes that challenge the Company’s ability to enforce its underwriting intent. Such matters could result, directly or indirectly, in providers of protection not meeting their obligations to the Company or not doing so on a timely basis. The Company may also be subject to other disputes from time to time, relating to operational or other matters distinct from insurance or reinsurance claims. Any litigation or arbitration, or regulatory process contains an element of uncertainty, and the value of an exposure or a gain contingency related to a dispute is difficult to estimate. The Company believes that no individual litigation or arbitration to which it is presently a party is likely to have a material adverse effect on its financial condition, business or operations. Validus Acquisition See “Note 15. Acquisition of Validus” for information related to the obligations of the Company with respect to the Validus Acquisition. |
ACQUISITION OF VALIDUS
ACQUISITION OF VALIDUS | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION OF VALIDUS | ACQUISITION OF VALIDUS On May 22, 2023, RenaissanceRe entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with American International Group, Inc., a Delaware corporation and NYSE-listed company (together with its affiliates and subsidiaries, “AIG”) pursuant to which, upon the terms and subject to the conditions thereof, RenaissanceRe agreed to, or to cause one of its subsidiaries to, purchase, acquire and accept from certain subsidiaries of AIG, all of their right, title and interest in the shares of certain direct and indirect subsidiaries of AIG, including Validus Holdings, Ltd. (“Validus Holdings”), and Validus Specialty, LLC (“Validus Specialty”). Substantially all of the assets of Validus Holdings is comprised of its equity interest in its wholly-owned subsidiary, Validus Reinsurance, Ltd. (“Validus Re”). In the Stock Purchase Agreement, the Company also agreed to acquire the renewal rights, records and customer relationships of Talbot Underwriting Ltd., an affiliate of AIG (“Talbot”), a specialty (re)insurance group operating within the Lloyd’s market. The acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated in the Stock Purchase Agreement, are referred to herein as the “Validus Acquisition” and Validus Holdings, Validus Specialty, and their respective subsidiaries (including Validus Re) collectively are referred to herein as “Validus.” The Validus Acquisition, which is currently expected to close during the fourth quarter of 2023, is subject to customary closing conditions, including the receipt of required regulatory approvals. In connection with the Validus Acquisition, the Company will pay to AIG aggregate consideration of approximately $2.985 billion, subject to adjustment, consisting of the following: (i) cash consideration of approximately $2.735 billion; and (ii) a number of our common shares with a value of approximately $250.0 million, which common shares will be valued at $189.03 per share (the “Base Common Share Consideration”). The Company has agreed to enter into a registration rights agreement with AIG in respect of the Base Common Share Consideration prior to the completion of the Validus Acquisition. AIG also has the option to make a substantial investment into the Company’s Capital Partners vehicles. As set forth in the Stock Purchase Agreement, AIG is also entitled to cause certain Validus entities to be acquired by the Company to pay, prior to the completion of the Validus Acquisition, to AIG entities not being acquired by the Company, one or more dividends in an aggregate amount equal to the estimated excess tangible book value of all acquired entities above $2.1 billion. The amount of dividend is subject to change based on changes in tangible book value as of the date of the dividend. However, if such dividend fails to receive necessary regulatory approvals to be consummated, AIG will cause such Validus entities to maximize the amount of the estimated excess tangible book value of all acquired entities that can be paid by such dividend, and any remaining amount will be retained by the Validus entities and, following the closing, will be paid to AIG in one or more installments upon receipt of requisite regulatory approvals. The Stock Purchase Agreement also includes a reserve development arrangement on net reserves acquired at closing such that AIG retains 95% of risk and reward on the development of in-force reserves. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT Effective July 1, 2023, RenaissanceRe purchased $45.8 million of shares in DaVinci from a third-party investor. The Company’s noncontrolling economic ownership in DaVinci subsequent to this transaction was 27.8%, effective July 1, 2023 . |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 199,869 | $ (316,069) | $ 772,775 | $ (701,638) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these statements. Certain comparative information has been reclassified to conform to the current presentation. Because of the seasonality of the Company’s business, the results of operations and cash flows for any interim period will not necessarily be indicative of the results of operations and cash flows for the full fiscal year or subsequent quarters. |
Use of Estimates in Financial Statements | USE OF ESTIMATES IN FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the reserve for claims and claim expenses; reinsurance recoverable and premiums receivable, including provisions for reinsurance recoverable and premiums receivable to reflect expected credit losses; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; and the Company’s deferred tax valuation allowance. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value of Fixed Maturity and Equity Investments Trading | The following table summarizes the fair value of fixed maturity investments trading: June 30, December 31, U.S. treasuries $ 8,592,242 $ 7,180,129 Corporate (1) 4,371,407 4,390,568 Agencies 476,476 395,149 Non-U.S. government 401,743 383,838 Residential mortgage-backed 788,256 710,429 Commercial mortgage-backed 209,661 213,987 Asset-backed 1,048,779 1,077,302 Total fixed maturity investments trading $ 15,888,564 $ 14,351,402 (1) Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. The following table summarizes the fair value of equity investments: June 30, December 31, Financials $ 92,890 $ 103,250 Consumer 155 33,447 Communications and technology 13 48,687 Fixed income exchange traded funds — 295,481 Equity exchange traded funds — 90,510 Industrial, utilities and energy — 25,326 Healthcare — 24,617 Basic materials — 3,740 Total $ 93,058 $ 625,058 |
Schedule of Contractual Maturities of Fixed Maturity Investments | Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, December 31, Amortized Fair Value Amortized Cost Fair Value Due in less than one year $ 522,097 $ 515,445 $ 364,501 $ 356,770 Due after one through five years 8,653,072 8,444,588 8,117,971 7,875,771 Due after five through ten years 4,748,683 4,578,779 4,072,142 3,805,287 Due after ten years 331,809 303,056 356,268 311,856 Mortgage-backed 1,073,223 997,917 1,009,205 924,416 Asset-backed 1,069,798 1,048,779 1,118,464 1,077,302 Total $ 16,398,682 $ 15,888,564 $ 15,038,551 $ 14,351,402 |
Schedule of Net Investment Income | The components of net investment income are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Fixed maturity investments trading $ 169,739 $ 76,547 $ 325,239 $ 138,964 Short term investments 50,231 4,397 83,181 5,533 Equity investments 2,766 4,516 6,165 7,270 Other investments Catastrophe bonds 49,522 20,235 88,353 37,595 Other 20,820 6,894 45,391 12,446 Cash and cash equivalents 4,585 (95) 8,849 (136) 297,663 112,494 557,178 201,672 Investment expenses (5,001) (5,283) (10,138) (10,770) Net investment income $ 292,662 $ 107,211 $ 547,040 $ 190,902 |
Schedule of Net Realized and Unrealized Gains (Losses) | Net realized and unrealized gains (losses) on investments are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Net realized gains (losses) on fixed maturity investments trading $ (74,212) $ (287,154) $ (178,977) $ (408,306) Net unrealized gains (losses) on fixed maturity investments trading (139,793) (149,820) 172,233 (613,997) Net realized and unrealized gains (losses) on fixed maturity investments trading (214,005) (436,974) (6,744) (1,022,303) Net realized and unrealized gains (losses) on investments-related derivatives (1) (65,051) (66,078) (52,889) (106,366) Net realized gains (losses) on equity investments (18,755) 35,592 (27,493) 35,572 Net unrealized gains (losses) on equity investments 20,627 (127,104) 59,778 (175,773) Net realized and unrealized gains (losses) on equity investments 1,872 (91,512) 32,285 (140,201) Net realized and unrealized gains (losses) on other investments - catastrophe bonds 38,186 (24,660) 62,312 (32,921) Net realized and unrealized gains (losses) on other investments - other 16,217 (34,883) 21,706 (25,333) Net realized and unrealized gains (losses) on investments $ (222,781) $ (654,107) $ 56,670 $ (1,327,124) (1) Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures, interest rate swaps, credit default swaps and total return swaps), and equity investments related derivatives (equity futures). See “Note 13. Derivative Instruments” for additional information. |
Net Sales (Purchases) of Investments | The tables below show the Company’s cash flows in respect of gross and net purchases and sales of equity investments, short term investments, other investments and investments in other ventures for the six months ended June 30, 2023 and 2022. Six months ended June 30, 2023 Gross Purchases Gross Sales Net Equity investments $ (1,687) $ 548,086 $ 546,399 Short term investments $ (19,067,333) $ 17,410,561 $ (1,656,772) Other investments $ (750,539) $ 260,173 $ (490,366) Investments in other ventures $ (13,048) $ — $ (13,048) Six months ended June 30, 2022 Gross Purchases Gross Sales Net Equity investments $ (498,171) $ 211,772 $ (286,399) Short term investments $ (13,619,935) $ 14,559,671 $ 939,736 Other investments $ (682,151) $ 284,628 $ (397,523) Investments in other ventures $ (949) $ 3,340 $ 2,391 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets: At June 30, 2023 Total Quoted Significant Significant Fixed maturity investments trading U.S. treasuries $ 8,592,242 $ 8,592,242 $ — $ — Corporate (1) 4,371,407 — 4,371,407 — Agencies 476,476 — 476,476 — Non-U.S. government 401,743 — 401,743 — Residential mortgage-backed 788,256 — 788,256 — Commercial mortgage-backed 209,661 — 209,661 — Asset-backed 1,048,779 — 1,048,779 — Total fixed maturity investments trading 15,888,564 8,592,242 7,296,322 — Short term investments 6,373,969 94,474 6,279,495 — Equity investments trading 93,058 93,058 — — Other investments Catastrophe bonds 1,679,184 — 1,679,184 — Term loans 100,000 — — 100,000 Direct private equity investments 71,155 — — 71,155 1,850,339 — 1,679,184 171,155 Fund investments (2) 1,241,347 — — — Total other investments 3,091,686 — 1,679,184 171,155 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (3) (475) — — (475) Derivative assets (4) 25,307 370 24,937 — Derivative liabilities (4) (14,989) (2,113) (12,876) — Total other assets and (liabilities) 9,843 (1,743) 12,061 (475) $ 25,457,120 $ 8,778,031 $ 15,267,062 $ 170,680 (1) Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. (2) Fund investments, which may include private equity funds, private credit funds, and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (3) Included in assumed and ceded (re)insurance contracts at June 30, 2023 was $0.6 million of other assets and $1.0 million of other liabilities. (4) Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. At December 31, 2022 Total Quoted Significant Significant Fixed maturity investments trading U.S. treasuries $ 7,180,129 $ 7,180,129 $ — $ — Corporate (1) 4,390,568 — 4,390,568 — Agencies 395,149 — 395,149 — Non-U.S. government 383,838 — 383,838 — Residential mortgage-backed 710,429 — 710,429 — Commercial mortgage-backed 213,987 — 213,987 — Asset-backed 1,077,302 — 1,077,302 — Total fixed maturity investments trading 14,351,402 7,180,129 7,171,273 — Short term investments 4,669,272 — 4,669,272 — Equity investments 625,058 625,058 — — Other investments Catastrophe bonds 1,241,468 — 1,241,468 — Term loans 100,000 100,000 Direct private equity investments 66,780 — — 66,780 1,408,248 — 1,241,468 166,780 Fund investments (2) 1,086,706 — — — Total other investments 2,494,954 — 1,241,468 166,780 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (3) (1,832) — — (1,832) Derivative assets (4) 44,400 387 44,013 — Derivative liabilities (4) (7,560) (2,008) (5,552) — Total other assets and (liabilities) 35,008 (1,621) 38,461 (1,832) $ 22,175,694 $ 7,803,566 $ 13,120,474 $ 164,948 (1) Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. (2) Fund investments, which may include private equity funds, private credit funds and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (3) Included in assumed and ceded (re)insurance contracts at December 31, 2022 was $3.5 million of other assets and $5.3 million of other liabilities. (4) Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. |
Schedule of Quantitative Information Used as Level 3 Inputs | Below is a summary of quantitative information regarding the significant unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis: At June 30, 2023 Fair Value Valuation Technique Unobservable Low High Weighted Average or Actual Other investments Direct private equity investments $ 71,155 Internal valuation model Discount rate n/a n/a 10.0% Liquidity discount n/a n/a 15.0 % Term loans 100,000 Discounted cash flow Credit spread adjustment n/a n/a 0.2 % Risk premium n/a n/a 2.6 % Total other investments 171,155 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (475) Internal valuation model Net undiscounted cash flows n/a n/a $ 12,389 Expected loss ratio n/a n/a 2.9 % Discount rate n/a n/a 4.0 % Total other assets and (liabilities) (475) Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 170,680 At December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Low High Weighted Average or Actual Other investments Direct private equity investments $ 66,780 Internal valuation model Discount rate n/a n/a 7.5 % Liquidity discount n/a n/a 15.0 % Term loans 100,000 Discounted cash flow Credit spread Adjustment n/a n/a 0.2 % Risk premium n/a n/a 2.6 % Total other investments 166,780 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (1,832) Internal valuation model Net undiscounted cash flows n/a n/a $ 14,734 Expected loss ratio n/a n/a 5.8 % Discount rate n/a n/a 4.0 % Total other assets and (liabilities) (1,832) Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 164,948 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Other Other assets Total Direct private equity investments Term loans Balance - April 1, 2023 $ 67,532 $ 100,000 $ (1,112) $ 166,420 Included in net investment income 62 — — 62 Included in net realized and unrealized gains (losses) on investments 3,548 — — 3,548 Included in other income (loss) — — (1,029) (1,029) Total foreign exchange gains (losses) 13 — — 13 Purchases — — 1,666 1,666 Balance - June 30, 2023 $ 71,155 $ 100,000 $ (475) $ 170,680 Other Other assets Total Direct private equity investments Term loans Balance - January 1, 2023 $ 66,780 $ 100,000 $ (1,832) $ 164,948 Included in net investment income 124 — — 124 Included in net realized and unrealized gains (losses) on investments 4,257 — — 4,257 Included in other income (loss) — — (9) (9) Total foreign exchange gains (losses) (6) — — (6) Purchases — — 1,366 1,366 Balance - June 30, 2023 $ 71,155 $ 100,000 $ (475) $ 170,680 Other Other assets and (liabilities) Total Direct private equity investments Term loans Balance - April 1, 2022 $ 80,213 $ 85,000 $ (4,099) $ 161,114 Included in net investment income — — — — Included in net realized and unrealized gains (losses) on investments (3,603) — — (3,603) Included in other income (loss) — — 280 280 Purchases 5,000 15,000 755 20,755 Balance - June 30, 2022 $ 81,610 $ 100,000 $ (3,064) $ 178,546 Other Other assets and (liabilities) Total Direct private equity investments Term loans Balance - January 1, 2022 $ 88,373 $ 74,850 $ (4,727) $ 158,496 Included in net investment income — 605 — 605 Included in net realized and unrealized gains (losses) on investments (11,753) — — (11,753) Included in other income (loss) — — 1,189 1,189 Total foreign exchange losses (10) — — (10) Purchases 5,000 25,000 474 30,474 Settlements — (455) — (455) Balance - June 30, 2022 $ 81,610 $ 100,000 $ (3,064) $ 178,546 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Other Other assets Total Direct private equity investments Term loans Balance - April 1, 2023 $ 67,532 $ 100,000 $ (1,112) $ 166,420 Included in net investment income 62 — — 62 Included in net realized and unrealized gains (losses) on investments 3,548 — — 3,548 Included in other income (loss) — — (1,029) (1,029) Total foreign exchange gains (losses) 13 — — 13 Purchases — — 1,666 1,666 Balance - June 30, 2023 $ 71,155 $ 100,000 $ (475) $ 170,680 Other Other assets Total Direct private equity investments Term loans Balance - January 1, 2023 $ 66,780 $ 100,000 $ (1,832) $ 164,948 Included in net investment income 124 — — 124 Included in net realized and unrealized gains (losses) on investments 4,257 — — 4,257 Included in other income (loss) — — (9) (9) Total foreign exchange gains (losses) (6) — — (6) Purchases — — 1,366 1,366 Balance - June 30, 2023 $ 71,155 $ 100,000 $ (475) $ 170,680 Other Other assets and (liabilities) Total Direct private equity investments Term loans Balance - April 1, 2022 $ 80,213 $ 85,000 $ (4,099) $ 161,114 Included in net investment income — — — — Included in net realized and unrealized gains (losses) on investments (3,603) — — (3,603) Included in other income (loss) — — 280 280 Purchases 5,000 15,000 755 20,755 Balance - June 30, 2022 $ 81,610 $ 100,000 $ (3,064) $ 178,546 Other Other assets and (liabilities) Total Direct private equity investments Term loans Balance - January 1, 2022 $ 88,373 $ 74,850 $ (4,727) $ 158,496 Included in net investment income — 605 — 605 Included in net realized and unrealized gains (losses) on investments (11,753) — — (11,753) Included in other income (loss) — — 1,189 1,189 Total foreign exchange losses (10) — — (10) Purchases 5,000 25,000 474 30,474 Settlements — (455) — (455) Balance - June 30, 2022 $ 81,610 $ 100,000 $ (3,064) $ 178,546 |
Schedule of Balances Elected to Account for at Fair Value | Below is a summary of the balances the Company has elected to account for at fair value: June 30, December 31, Other investments $ 3,091,686 $ 2,494,954 Other assets $ 557 $ 3,499 Other liabilities $ 1,032 $ 5,331 |
Schedule of Other Investments Measured Using Net Asset Valuations | The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient: At June 30, 2023 Fair Value Unfunded Redemption Frequency Redemption Redemption Private credit funds $ 876,010 $ 628,000 See below See below See below Private equity funds 365,337 535,839 See below See below See below Total other investments measured using net asset valuations $ 1,241,347 $ 1,163,839 At December 31, 2022 Fair Value Unfunded Redemption Frequency Redemption Redemption Private credit funds $ 771,383 $ 714,302 See below See below See below Private equity funds 315,323 493,155 See below See below See below Total other investments measured using net asset valuations $ 1,086,706 $ 1,207,457 |
Schedule of Variable Interest Entities | The following table summarizes the aggregate carrying amount of the unconsolidated fund investments in VIEs, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss At June 30, 2023 Carrying amount Unfunded Commitments Total Other investments $ 1,078,812 $ 1,092,334 $ 2,171,146 At December 31, 2022 Other investments $ 916,248 $ 1,148,630 $ 2,064,878 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule of Effect of Reinsurance and Retrocessional Activity on Premiums Written and Earned and on Net Claims and Claim Expenses Incurred | The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred: Three months ended Six months ended June 30, June 30, June 30, June 30, Premiums Written Direct $ 278,695 $ 338,761 $ 451,391 $ 639,866 Assumed 2,372,926 2,125,878 4,990,491 4,767,737 Ceded (455,818) (601,023) (982,376) (1,378,770) Net premiums written $ 2,195,803 $ 1,863,616 $ 4,459,506 $ 4,028,833 Premiums Earned Direct $ 281,437 $ 278,609 $ 535,456 $ 521,370 Assumed 1,903,299 1,610,214 3,746,968 3,300,482 Ceded (399,474) (432,440) (816,612) (879,044) Net premiums earned $ 1,785,262 $ 1,456,383 $ 3,465,812 $ 2,942,808 Claims and Claim Expenses Gross claims and claim expenses incurred $ 1,089,656 $ 799,218 $ 2,049,360 $ 1,816,773 Claims and claim expenses recovered (158,445) (92,979) (316,949) (268,801) Net claims and claim expenses incurred $ 931,211 $ 706,239 $ 1,732,411 $ 1,547,972 |
Schedule of Activity in the Allowance Recorded Against Premium Receivables | The following table provides a roll forward of the provision for current expected credit losses of the Company’s premiums receivable: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Beginning balance $ 3,371 $ 2,776 $ 4,606 $ 2,776 Provision for (release of) allowance (220) 1,574 (1,455) 1,574 Ending balance $ 3,151 $ 4,350 $ 3,151 $ 4,350 |
Schedule of Activity in the Allowance Recorded Against Reinsurance Recoverable | The following table provides a roll forward of the provision for current expected credit losses of the Company’s reinsurance recoverable: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Beginning balance $ 11,504 $ 8,344 $ 12,169 $ 8,344 Provision for (release of) allowance (48) 661 (713) 661 Ending balance $ 11,456 $ 9,005 $ 11,456 $ 9,005 |
RESERVE FOR CLAIMS AND CLAIM _2
RESERVE FOR CLAIMS AND CLAIM EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claim Expenses | The following table summarizes the Company’s reserve for claims and claim expenses by segment, allocated between case reserves, additional case reserves and IBNR: At June 30, 2023 Case Additional IBNR Total Property $ 2,011,450 $ 2,074,234 $ 2,847,946 $ 6,933,630 Casualty and Specialty 1,967,639 204,511 7,032,348 9,204,498 Total $ 3,979,089 $ 2,278,745 $ 9,880,294 $ 16,138,128 At December 31, 2022 Property $ 1,956,688 $ 2,008,891 $ 3,570,253 $ 7,535,832 Casualty and Specialty 1,864,365 167,993 6,324,383 8,356,741 Total $ 3,821,053 $ 2,176,884 $ 9,894,636 $ 15,892,573 Activity in the liability for unpaid claims and claim expenses is summarized as follows: Six months ended June 30, 2023 2022 Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period $ 11,181,648 $ 9,025,961 Net incurred related to: Current year 1,869,261 1,608,762 Prior years (136,850) (60,790) Total net incurred 1,732,411 1,547,972 Net paid related to: Current year 92,909 41,124 Prior years 1,406,684 1,129,979 Total net paid 1,499,593 1,171,103 Foreign exchange (1) 34,311 (166,483) Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period 11,448,777 9,236,347 Reinsurance recoverable as of end of period 4,689,351 4,206,459 Reserve for claims and claim expenses as of end of period $ 16,138,128 $ 13,442,806 (1) Reflects the impact of the foreign exchange revaluation of the reserve for claims and claim expenses, net of reinsurance recoverable, denominated in non-U.S. dollars as at the balance sheet date. The following table details the Company’s prior year net development by segment of its net claims and claim expenses: Six months ended June 30, 2023 2022 (Favorable) adverse development (Favorable) adverse development Property $ (113,332) $ (51,810) Casualty and Specialty (23,518) (8,980) Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (136,850) $ (60,790) The following tables detail the development of the Company’s liability for net unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item: Six months ended June 30, 2023 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2022 Weather-Related Large Losses (1) $ 25,994 2021 Weather-Related Large Losses (2) (31,000) 2020 Weather-Related Large Loss Events (3) (3,077) 2019 Large Loss Events (4) (22,636) 2018 Large Loss Events (5) (24,059) 2017 Large Loss Events (6) (18,382) Other (620) Total large catastrophe events (73,780) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements (39,552) Total small catastrophe events and attritional loss movements (39,552) Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (113,332) (1) “2022 Weather-Related Large Losses” includes Hurricane Ian, the floods in Eastern Australia in February and March of 2022, Storm Eunice, the severe weather in France in May and June of 2022, Hurricane Fiona and the typhoons in Asia during the third quarter of 2022, Hurricane Nicole and Winter Storm Elliott during the fourth quarter of 2022, and loss estimates associated with certain aggregate loss contracts triggered during 2022 as a result of weather-related catastrophe events. (2) “2021 Weather-Related Large Losses” includes Winter Storm Uri, the European Floods, Hurricane Ida, the hail storm in Europe in late June 2021, the wildfires in California during the third quarter of 2021, the tornadoes in the Central and Midwest U.S. in December 2021, the Midwest Derecho in December 2021, and losses associated with aggregate loss contracts. (3) “2020 Weather-Related Large Loss Events” includes Hurricanes Laura, Sally, Isaias, Delta, Zeta and Eta, the California, Oregon and Washington wildfires, Typhoon Maysak, the August 2020 Derecho, and losses associated with aggregate loss contracts. (4) “2019 Large Loss Events” includes Hurricane Dorian and Typhoons Faxai and Hagibis and certain losses associated with aggregate loss contracts. (5) “2018 Large Loss Events” includes Typhoons Jebi, Mangkhut and Trami, Hurricane Florence, the wildfires in California during the third and fourth quarters of 2018, Hurricane Michael and certain losses associated with aggregate loss contracts. (6) “2017 Large Loss Events” includes Hurricanes Harvey, Irma and Maria, the Mexico City Earthquake, the wildfires in California during the fourth quarter of 2017 and certain losses associated with aggregate loss contracts. Six months ended June 30, 2022 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2021 Weather-Related Large Losses $ 4,385 2020 Weather-Related Large Loss Events (10,887) 2019 Large Loss Events (25,821) 2018 Large Loss Events (10,300) 2017 Large Loss Events (22,143) Other (2,578) Total large catastrophe events (67,344) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements 15,534 Total small catastrophe events and attritional loss movements 15,534 Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (51,810) The following table details the development of the Company’s prior accident years net claims and claim expenses for its Casualty and Specialty segment: Six months ended June 30, 2023 2022 (Favorable) adverse development (Favorable) adverse development Actuarial methods - actual reported claims less than expected claims $ (26,428) $ (27,315) Actuarial assumption changes 2,910 18,335 Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (23,518) $ (8,980) |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below: June 30, 2023 December 31, 2022 Fair value Carrying value Fair value Carrying value 5.750% Senior Notes due 2033 $ 736,995 $ 740,620 $ — $ — 3.600% Senior Notes due 2029 355,720 394,676 362,644 394,221 3.450% Senior Notes due 2027 280,005 298,022 280,506 297,775 3.700% Senior Notes due 2025 290,751 299,351 290,874 299,168 4.750% Senior Notes due 2025 (DaVinci) (1) 145,284 149,432 146,625 149,278 Total senior notes 1,808,755 1,882,101 1,080,649 1,140,442 Medici Revolving Credit Facility (2) — — 30,000 30,000 Total debt $ 1,808,755 $ 1,882,101 $ 1,110,649 $ 1,170,442 (1) RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinci. Because RenaissanceRe controls a majority of DaVinci’s issued voting shares, the consolidated financial statements of DaVinci are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinci and RenaissanceRe’s financial exposure to DaVinci is limited to its investment in DaVinci’s shares and counterparty credit risk arising from reinsurance transactions. |
Schedule of Line of Credit Facilities | The outstanding amounts issued or drawn under each of the Company’s significant credit facilities is set forth below: At June 30, 2023 Issued or drawn Revolving Credit Facility (1) $ — Medici Revolving Credit Facility (2) — Bilateral Letter of Credit Facilities Secured 395,583 Unsecured 497,308 Funds at Lloyd’s Letter of Credit Facility 275,000 $ 1,167,891 (1) At June 30, 2023, no amounts were issued or drawn under this facility. (2) RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s outstanding issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions. At June 30, 2023, no amounts were issued or drawn under this facility. |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below: June 30, December 31, Redeemable noncontrolling interest - DaVinci $ 2,267,448 $ 1,740,300 Redeemable noncontrolling interest - Medici 1,540,520 1,036,218 Redeemable noncontrolling interest - Vermeer 1,590,408 1,490,840 Redeemable noncontrolling interest - Fontana 277,886 268,031 Redeemable noncontrolling interests $ 5,676,262 $ 4,535,389 A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below: Three months ended Six months ended June 30, June 30, June 30, June 30, Redeemable noncontrolling interest - DaVinci $ 59,527 $ 58,822 $ 225,609 $ 33,499 Redeemable noncontrolling interest - Medici 62,190 (26,887) 107,259 (32,174) Redeemable noncontrolling interest - Vermeer 52,163 22,937 99,568 41,635 Redeemable noncontrolling interest - Fontana 1,027 (5,541) 9,855 (5,541) Net income (loss) attributable to redeemable noncontrolling interests $ 174,907 $ 49,331 $ 442,291 $ 37,419 The activity in redeemable noncontrolling interest – DaVinci is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 2,234,541 $ 1,775,503 $ 1,740,300 $ 1,499,451 Redemption of shares from redeemable noncontrolling interests (27,320) (74,141) (77,495) (161,569) Sale of shares to redeemable noncontrolling interests, net of adjustments 700 2,493 379,034 391,296 Net income (loss) attributable to redeemable noncontrolling interest 59,527 58,822 225,609 33,499 Ending balance $ 2,267,448 $ 1,762,677 $ 2,267,448 $ 1,762,677 Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,307,741 $ 941,912 $ 1,036,218 $ 856,820 Redemption of shares from redeemable noncontrolling interests, net of adjustments — (20,204) (17,648) (97,112) Sale of shares to redeemable noncontrolling interests 170,589 157,739 414,691 325,026 Net income (loss) attributable to redeemable noncontrolling interest 62,190 (26,887) 107,259 (32,174) Ending balance $ 1,540,520 $ 1,052,560 $ 1,540,520 $ 1,052,560 The activity in redeemable noncontrolling interest – Vermeer is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,538,245 $ 1,246,480 $ 1,490,840 $ 1,197,782 Sale of shares to redeemable noncontrolling interest — — — 30,000 Net income (loss) attributable to redeemable noncontrolling interest 52,163 22,937 99,568 41,635 Ending balance $ 1,590,408 $ 1,269,417 $ 1,590,408 $ 1,269,417 The activity in redeemable noncontrolling interest – Fontana is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 276,859 $ — $ 268,031 $ — Sale of shares to redeemable noncontrolling interest — 273,684 — 273,684 Net income (loss) attributable to redeemable noncontrolling interest 1,027 (5,541) 9,855 (5,541) Ending balance $ 277,886 $ 268,143 $ 277,886 $ 268,143 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Six months ended (common shares in thousands) June 30, June 30, June 30, June 30, Numerator: Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326) Amount allocated to participating common shareholders (1) (2,889) (272) (11,650) (507) Net income (loss) allocated to RenaissanceRe common shareholders $ 188,136 $ (325,185) $ 743,437 $ (719,833) Denominator: Denominator for basic income (loss) per RenaissanceRe common share - weighted average common shares (2) 45,898 43,170 44,387 43,264 Per common share equivalents of non-vested shares (2) 92 — 111 — Denominator for diluted income (loss) per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions (2) 45,990 43,170 44,498 43,264 Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic $ 4.10 $ (7.53) $ 16.75 $ (16.64) Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64) (1) Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company’s stock compensation plans. (2) In periods for which the Company has net loss allocated to RenaissanceRe common shareholders, the denominator used in calculating net loss attributable to RenaissanceRe common shareholders per common share - basic is also used in calculating net loss attributable to RenaissanceRe common shareholders per common share - diluted. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Significant Components of the Company's Revenues and Expenses by Segment | A summary of the significant components of the Company’s revenues and expenses by segment is as follows: Three months ended June 30, 2023 Property Casualty and Specialty Other Total Gross premiums written $ 1,402,606 $ 1,249,015 $ — $ 2,651,621 Net premiums written $ 1,144,655 $ 1,051,148 $ — $ 2,195,803 Net premiums earned $ 758,686 $ 1,026,576 $ — $ 1,785,262 Net claims and claim expenses incurred 281,993 649,218 — 931,211 Acquisition expenses 140,606 281,939 — 422,545 Operational expenses 55,077 25,414 — 80,491 Underwriting income (loss) $ 281,010 $ 70,005 $ — 351,015 Net investment income 292,662 292,662 Net foreign exchange gains (losses) (13,488) (13,488) Equity in earnings of other ventures 7,700 7,700 Other income (loss) 3,876 3,876 Net realized and unrealized gains (losses) on investments (222,781) (222,781) Corporate expenses (23,371) (23,371) Interest expense (14,895) (14,895) Income (loss) before taxes and redeemable noncontrolling interests 380,718 Income tax benefit (expense) (5,942) (5,942) Net (income) loss attributable to redeemable noncontrolling interests (174,907) (174,907) Dividends on preference shares (8,844) (8,844) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 Net claims and claim expenses incurred – current accident year $ 313,632 $ 649,677 $ — $ 963,309 Net claims and claim expenses incurred – prior accident years (31,639) (459) — (32,098) Net claims and claim expenses incurred – total $ 281,993 $ 649,218 $ — $ 931,211 Net claims and claim expense ratio – current accident year 41.3 % 63.3 % 54.0 % Net claims and claim expense ratio – prior accident years (4.1) % (0.1) % (1.8) % Net claims and claim expense ratio – calendar year 37.2 % 63.2 % 52.2 % Underwriting expense ratio 25.8 % 30.0 % 28.1 % Combined ratio 63.0 % 93.2 % 80.3 % Six months ended June 30, 2023 Property Casualty and Specialty Other Total Gross premiums written $ 2,706,805 $ 2,735,077 $ — $ 5,441,882 Net premiums written $ 2,164,484 $ 2,295,022 $ — $ 4,459,506 Net premiums earned $ 1,446,106 $ 2,019,706 $ — $ 3,465,812 Net claims and claim expenses incurred 469,602 1,262,809 — 1,732,411 Acquisition expenses 285,925 568,877 — 854,802 Operational expenses 110,890 47,075 — 157,965 Underwriting income (loss) $ 579,689 $ 140,945 $ — 720,634 Net investment income 547,040 547,040 Net foreign exchange gains (losses) (27,991) (27,991) Equity in earnings of other ventures 17,230 17,230 Other income (loss) (430) (430) Net realized and unrealized gains (losses) on investments 56,670 56,670 Corporate expenses (36,214) (36,214) Interest expense (27,029) (27,029) Income (loss) before taxes and redeemable noncontrolling interests 1,249,910 Income tax benefit (expense) (34,844) (34,844) Net (income) loss attributable to redeemable noncontrolling interests (442,291) (442,291) Dividends on preference shares (17,688) (17,688) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 755,087 Net claims and claim expenses incurred – current accident year $ 582,934 $ 1,286,327 $ — $ 1,869,261 Net claims and claim expenses incurred – prior accident years (113,332) (23,518) — (136,850) Net claims and claim expenses incurred – total $ 469,602 $ 1,262,809 $ — $ 1,732,411 Net claims and claim expense ratio – current accident year 40.3 % 63.7 % 53.9 % Net claims and claim expense ratio – prior accident years (7.8) % (1.2) % (3.9) % Net claims and claim expense ratio – calendar year 32.5 % 62.5 % 50.0 % Underwriting expense ratio 27.4 % 30.5 % 29.2 % Combined ratio 59.9 % 93.0 % 79.2 % Three months ended June 30, 2022 Property Casualty and Specialty Other Total Gross premiums written $ 1,218,321 $ 1,246,318 $ — $ 2,464,639 Net premiums written $ 887,975 $ 975,641 $ — $ 1,863,616 Net premiums earned $ 623,581 $ 832,802 $ — $ 1,456,383 Net claims and claim expenses incurred 171,924 534,315 — 706,239 Acquisition expenses 137,567 223,671 — 361,238 Operational expenses 49,627 22,893 — 72,520 Underwriting income (loss) $ 264,463 $ 51,923 $ — 316,386 Net investment income 107,211 107,211 Net foreign exchange gains (losses) (50,821) (50,821) Equity in earnings of other ventures 7,383 7,383 Other income (loss) 923 923 Net realized and unrealized gains (losses) on investments (654,107) (654,107) Corporate expenses (12,352) (12,352) Interest expense (11,895) (11,895) Income (loss) before taxes and redeemable noncontrolling interests (297,272) Income tax benefit (expense) 30,534 30,534 Net (income) loss attributable to redeemable noncontrolling interests (49,331) (49,331) Dividends on preference shares (8,844) (8,844) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ (324,913) Net claims and claim expenses incurred – current accident year $ 206,976 $ 542,220 $ — $ 749,196 Net claims and claim expenses incurred – prior accident years (35,052) (7,905) — (42,957) Net claims and claim expenses incurred – total $ 171,924 $ 534,315 $ — $ 706,239 Net claims and claim expense ratio – current accident year 33.2 % 65.1 % 51.4 % Net claims and claim expense ratio – prior accident years (5.6) % (0.9) % (2.9) % Net claims and claim expense ratio – calendar year 27.6 % 64.2 % 48.5 % Underwriting expense ratio 30.0 % 29.6 % 29.8 % Combined ratio 57.6 % 93.8 % 78.3 % Six months ended June 30, 2022 Property Casualty and Specialty Other Total Gross premiums written $ 2,561,829 $ 2,845,774 $ — $ 5,407,603 Net premiums written $ 1,778,141 $ 2,250,692 $ — $ 4,028,833 Net premiums earned $ 1,242,172 $ 1,700,636 $ — $ 2,942,808 Net claims and claim expenses incurred 431,685 1,116,287 — 1,547,972 Acquisition expenses 264,663 473,082 — 737,745 Operational expenses 96,559 43,868 — 140,427 Underwriting income (loss) $ 449,265 $ 67,399 $ — 516,664 Net investment income 190,902 190,902 Net foreign exchange gains (losses) (66,307) (66,307) Equity in earnings of other ventures 993 993 Other income (loss) 2,116 2,116 Net realized and unrealized gains (losses) on investments (1,327,124) (1,327,124) Corporate expenses (24,854) (24,854) Interest expense (23,850) (23,850) Income (loss) before taxes and redeemable noncontrolling interests (731,460) Income tax benefit (expense) 67,241 67,241 Net (income) loss attributable to redeemable noncontrolling interests (37,419) (37,419) Dividends on preference shares (17,688) (17,688) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ (719,326) Net claims and claim expenses incurred – current accident year $ 483,495 $ 1,125,267 $ — $ 1,608,762 Net claims and claim expenses incurred – prior accident years (51,810) (8,980) — (60,790) Net claims and claim expenses incurred – total $ 431,685 $ 1,116,287 $ — $ 1,547,972 Net claims and claim expense ratio – current accident year 38.9 % 66.2 % 54.7 % Net claims and claim expense ratio – prior accident years (4.1) % (0.6) % (2.1) % Net claims and claim expense ratio – calendar year 34.8 % 65.6 % 52.6 % Underwriting expense ratio 29.0 % 30.4 % 29.8 % Combined ratio 63.8 % 96.0 % 82.4 % |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Derivative Instruments [Abstract] | |
Schedule of Location on Consolidated Balance Sheets and Fair Value of Principal Derivative Instruments | The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments: Derivative Assets At June 30, 2023 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Received Net Amount Derivative instruments not designated as hedges Interest rate futures $ 370 $ — $ 370 Other assets $ — $ 370 Foreign currency forward contracts (1) 24,119 — 24,119 Other assets — 24,119 Foreign currency forward contracts (2) 78 — 78 Other assets — 78 Credit default swaps 121 — 121 Other assets — 121 Total derivative instruments not designated as hedges 24,688 — 24,688 — 24,688 Derivative instruments designated as hedges Foreign currency forward contracts (3) 619 — 619 Other assets — 619 Total $ 25,307 $ — $ 25,307 $ — $ 25,307 Derivative Liabilities At June 30, 2023 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Derivative instruments not designated as hedges Interest rate futures $ 2,113 $ — $ 2,113 Other liabilities $ 2,045 $ 68 Foreign currency forward contracts (1) 4,027 — 4,027 Other liabilities — 4,027 Foreign currency forward contracts (2) 2,998 — 2,998 Other liabilities — 2,998 Credit default swaps 5,851 — 5,851 Other liabilities 5,851 — Total derivative instruments not designated as hedges 14,989 — 14,989 7,896 7,093 Total $ 14,989 $ — $ 14,989 $ 7,896 $ 7,093 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. (3) Contracts designated as hedges of net investments in a foreign operation. Derivative Assets At December 31, 2022 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Received Net Amount Derivative instruments not designated as hedges Interest rate futures $ 387 $ — $ 387 Other assets $ — $ 387 Foreign currency forward contracts (1) 31,755 — 31,755 Other assets — 31,755 Foreign currency forward contracts (2) 11,866 — 11,866 Other assets — 11,866 Credit default swaps 413 — 413 Other assets — 413 Total derivative instruments not designated as hedges 44,421 — 44,421 — 44,421 Total $ 44,421 $ — $ 44,421 $ — $ 44,421 Derivative Liabilities At December 31, 2022 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Derivative instruments not designated as hedges Interest rate futures $ 1,685 $ — $ 1,685 Other liabilities $ 209 $ 1,476 Foreign currency forward contracts (1) 1,160 — 1,160 Other liabilities — 1,160 Foreign currency forward contracts (2) 2,165 — 2,165 Other liabilities — 2,165 Credit default swaps 1,055 — 1,055 Other liabilities 100 955 Equity futures 323 — 323 Other liabilities — 323 Total derivative instruments not designated as hedges 6,388 — 6,388 309 6,079 Derivative instruments designated as hedges Foreign currency forward contracts (3) 1,193 — 1,193 Other liabilities — 1,193 Total $ 7,581 $ — $ 7,581 $ 309 $ 7,272 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. (3) Contracts designated as hedges of net investments in a foreign operation. |
Schedule of Gain (Loss) Recognized in Consolidated Statements of Operations Related to Principal Derivative Instruments | The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table: Location of gain (loss) Amount of gain (loss) recognized on Three months ended June 30, 2023 2022 Derivative instruments not designated as hedges Interest rate futures (1) Net realized and unrealized gains (losses) on investments $ (47,030) $ (14,699) Foreign currency forward contracts (2) Net foreign exchange gains (losses) 4,900 (51,834) Foreign currency forward contracts (3) Net foreign exchange gains (losses) (11,111) 10,062 Foreign currency option contracts Net foreign exchange gains (losses) — (225) Credit default swaps (1) Net realized and unrealized gains (losses) on investments (17,460) (2,337) Equity futures (4) Net realized and unrealized gains (losses) on investments (561) (49,042) Total derivative instruments not designated as hedges (71,262) (108,075) Derivative instruments designated as hedges Foreign currency forward contracts (5) Accumulated other comprehensive income (loss) 591 7,321 Total $ (70,671) $ (100,754) Location of gain (loss) Amount of gain (loss) recognized on Six months ended June 30, 2023 2022 Derivative instruments not designated as hedges Interest rate futures (1) Net realized and unrealized gains (losses) on investments $ (21,547) $ (43,486) Foreign currency forward contracts (2) Net foreign exchange gains (losses) 9,645 (72,757) Foreign currency forward contracts (3) Net foreign exchange gains (losses) (14,791) 8,171 Foreign currency option contracts Net foreign exchange gains (losses) — (444) Credit default swaps (1) Net realized and unrealized gains (losses) on investments (29,414) (6,474) Equity futures (4) Net realized and unrealized gains (losses) on investments (1,928) (56,406) Total derivative instruments not designated as hedges (58,035) (171,396) Derivative instruments designated as hedges Foreign currency forward contracts (5) Accumulated other comprehensive income (loss) 1,539 4,294 Total $ (56,496) $ (167,102) (1) Fixed income related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information. (2) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (3) Contracts used to manage foreign currency risks in investment operations. (4) Equity related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information. (5) Contracts designated as hedges of net investments in a foreign operation. |
Schedule of Derivative Instruments Designated as Hedges of a Net Investment in a Foreign Operation | The table below provides a summary of derivative instruments designated as hedges of net investments in a foreign operation, including the weighted average U.S. dollar equivalent of foreign denominated net (liabilities) assets that were hedged and the resulting derivative gains (losses) that are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive income (loss) on the Company’s consolidated statements of changes in shareholders’ equity: Three months ended Six months ended June 30, June 30, June 30, June 30, Weighted average of U.S. dollar equivalent of foreign denominated net assets (liabilities) $ 59,020 $ 79,933 $ 59,348 $ 83,769 Derivative gains (losses) (1) $ 591 $ 7,321 $ 1,539 $ 4,294 (1) Derivative gains (losses) from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive income (loss) on the Company’s consolidated statements of changes in shareholders’ equity. |
INVESTMENTS - Schedule of Fair
INVESTMENTS - Schedule of Fair Value of Fixed Maturity Investments Trading (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | $ 15,888,564 | $ 14,351,402 |
U.S. treasuries | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 8,592,242 | 7,180,129 |
Corporate | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 4,371,407 | 4,390,568 |
Agencies | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 476,476 | 395,149 |
Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 401,743 | 383,838 |
Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 788,256 | 710,429 |
Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 209,661 | 213,987 |
Asset-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | $ 1,048,779 | $ 1,077,302 |
INVESTMENTS - Schedule of Contr
INVESTMENTS - Schedule of Contractual Maturities of Fixed Maturity Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in less than one year | $ 522,097 | $ 364,501 |
Due after one through five years | 8,653,072 | 8,117,971 |
Due after five through ten years | 4,748,683 | 4,072,142 |
Due after ten years | 331,809 | 356,268 |
Amortized Cost | 16,398,682 | 15,038,551 |
Fair Value | ||
Due in less than one year | 515,445 | 356,770 |
Due after one through five years | 8,444,588 | 7,875,771 |
Due after five through ten years | 4,578,779 | 3,805,287 |
Due after ten years | 303,056 | 311,856 |
Fixed maturity investments trading | 15,888,564 | 14,351,402 |
Mortgage-backed | ||
Amortized Cost | ||
Amortized Cost | 1,073,223 | 1,009,205 |
Fair Value | ||
Fixed maturity investments trading | 997,917 | 924,416 |
Asset-backed | ||
Amortized Cost | ||
Amortized Cost | 1,069,798 | 1,118,464 |
Fair Value | ||
Fixed maturity investments trading | $ 1,048,779 | $ 1,077,302 |
INVESTMENTS - Schedule of Fai_2
INVESTMENTS - Schedule of Fair Value of Equity Investments Trading (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | $ 93,058 | $ 625,058 |
Financials | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 92,890 | 103,250 |
Consumer | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 155 | 33,447 |
Communications and technology | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 13 | 48,687 |
Fixed income exchange traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 0 | 295,481 |
Equity exchange traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 0 | 90,510 |
Industrial, utilities and energy | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 0 | 25,326 |
Healthcare | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 0 | 24,617 |
Basic materials | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | $ 0 | $ 3,740 |
INVESTMENTS - Pledged Investmen
INVESTMENTS - Pledged Investments (Details) - USD ($) $ in Billions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of various counterparties | $ 7.3 | $ 7.9 |
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of U.S. state regulatory authorities | $ 1.3 | $ 1.2 |
INVESTMENTS - Reverse Purchase
INVESTMENTS - Reverse Purchase Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 486.2 | $ 38.5 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102% |
INVESTMENTS - Schedule of Net I
INVESTMENTS - Schedule of Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | $ 297,663 | $ 112,494 | $ 557,178 | $ 201,672 |
Investment expenses | (5,001) | (5,283) | (10,138) | (10,770) |
Net investment income | 292,662 | 107,211 | 547,040 | 190,902 |
Fixed maturity investments trading | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 169,739 | 76,547 | 325,239 | 138,964 |
Short term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 50,231 | 4,397 | 83,181 | 5,533 |
Equity investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 2,766 | 4,516 | 6,165 | 7,270 |
Catastrophe bonds | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 49,522 | 20,235 | 88,353 | 37,595 |
Other | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 20,820 | 6,894 | 45,391 | 12,446 |
Cash and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | $ 4,585 | $ (95) | $ 8,849 | $ (136) |
INVESTMENTS - Schedule of Net R
INVESTMENTS - Schedule of Net Realized and Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on investments | $ (222,781) | $ (654,107) | $ 56,670 | $ (1,327,124) |
Fixed maturity investments trading | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on fixed maturity investments trading | (74,212) | (287,154) | (178,977) | (408,306) |
Net unrealized gains (losses) on fixed maturity investments trading | (139,793) | (149,820) | 172,233 | (613,997) |
Net realized and unrealized gains (losses) on fixed maturity investments trading | (214,005) | (436,974) | (6,744) | (1,022,303) |
Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on investments-related derivatives | (65,051) | (66,078) | (52,889) | (106,366) |
Equity investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on equity investments | (18,755) | 35,592 | (27,493) | 35,572 |
Net unrealized gains (losses) on equity investments | 20,627 | (127,104) | 59,778 | (175,773) |
Net realized and unrealized gains (losses) on equity investments | 1,872 | (91,512) | 32,285 | (140,201) |
Catastrophe bonds | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on other investments | 38,186 | (24,660) | 62,312 | (32,921) |
Other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on other investments | $ 16,217 | $ (34,883) | $ 21,706 | $ (25,333) |
INVESTMENTS - Net Sales (Purcha
INVESTMENTS - Net Sales (Purchases) of Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Equity investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross Purchases | $ (1,687) | $ (498,171) |
Gross Sales | 548,086 | 211,772 |
Net | 546,399 | (286,399) |
Short term investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross Purchases | (19,067,333) | (13,619,935) |
Gross Sales | 17,410,561 | 14,559,671 |
Net | (1,656,772) | 939,736 |
Other investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross Purchases | (750,539) | (682,151) |
Gross Sales | 260,173 | 284,628 |
Net | (490,366) | (397,523) |
Investments in other ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross Purchases | (949) | |
Gross Sales | 0 | 3,340 |
Net | $ (13,048) | $ 2,391 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | $ 15,888,564 | $ 14,351,402 |
Short term investments | 6,373,969 | 4,669,272 |
Equity investments trading | 93,058 | 625,058 |
Other investments | 3,091,686 | 2,494,954 |
Derivative assets | 25,307 | 44,421 |
Derivative liabilities | (14,989) | (7,581) |
Other assets | 557 | 3,499 |
Other liabilities | (1,032) | (5,331) |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 15,888,564 | 14,351,402 |
Short term investments | 6,373,969 | 4,669,272 |
Equity investments trading | 93,058 | 625,058 |
Other investments | 3,091,686 | 2,494,954 |
Assumed and ceded (re)insurance contracts | (475) | (1,832) |
Derivative assets | 25,307 | 44,400 |
Derivative liabilities | (14,989) | (7,560) |
Other assets | 9,843 | 35,008 |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 25,457,120 | 22,175,694 |
Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 1,850,339 | 1,408,248 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 8,592,242 | 7,180,129 |
Short term investments | 94,474 | 0 |
Equity investments trading | 93,058 | 625,058 |
Other investments | 0 | 0 |
Assumed and ceded (re)insurance contracts | 0 | 0 |
Derivative assets | 370 | 387 |
Derivative liabilities | (2,113) | (2,008) |
Other liabilities | (1,743) | (1,621) |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 8,778,031 | 7,803,566 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 7,296,322 | 7,171,273 |
Short term investments | 6,279,495 | 4,669,272 |
Equity investments trading | 0 | 0 |
Other investments | 1,679,184 | 1,241,468 |
Assumed and ceded (re)insurance contracts | 0 | 0 |
Derivative assets | 24,937 | 44,013 |
Derivative liabilities | (12,876) | (5,552) |
Other assets | 12,061 | 38,461 |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 15,267,062 | 13,120,474 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Short term investments | 0 | 0 |
Equity investments trading | 0 | 0 |
Other investments | 171,155 | 166,780 |
Assumed and ceded (re)insurance contracts | (475) | (1,832) |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Other liabilities | (475) | (1,832) |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 170,680 | 164,948 |
Significant Unobservable Inputs (Level 3) | Other assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed and ceded (re)insurance contracts | (600) | (3,500) |
Significant Unobservable Inputs (Level 3) | Other liabilities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed and ceded (re)insurance contracts | (1,000) | (5,300) |
U.S. treasuries | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 8,592,242 | 7,180,129 |
U.S. treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 8,592,242 | 7,180,129 |
U.S. treasuries | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
U.S. treasuries | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Corporate | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 4,371,407 | 4,390,568 |
Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Corporate | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 4,371,407 | 4,390,568 |
Corporate | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Agencies | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 476,476 | 395,149 |
Agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Agencies | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 476,476 | 395,149 |
Agencies | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Non-U.S. government | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 401,743 | 383,838 |
Non-U.S. government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Non-U.S. government | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 401,743 | 383,838 |
Non-U.S. government | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Residential mortgage-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 788,256 | 710,429 |
Residential mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Residential mortgage-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 788,256 | 710,429 |
Residential mortgage-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Commercial mortgage-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 209,661 | 213,987 |
Commercial mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Commercial mortgage-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 209,661 | 213,987 |
Commercial mortgage-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Asset-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 1,048,779 | 1,077,302 |
Asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Asset-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 1,048,779 | 1,077,302 |
Asset-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments trading | 0 | 0 |
Catastrophe bonds | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 1,679,184 | 1,241,468 |
Catastrophe bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Catastrophe bonds | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 1,679,184 | 1,241,468 |
Catastrophe bonds | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Term loans | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 100,000 | 100,000 |
Term loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | |
Term loans | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | |
Term loans | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 100,000 | 100,000 |
Direct private equity investments | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 71,155 | 66,780 |
Direct private equity investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Direct private equity investments | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Direct private equity investments | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 71,155 | 66,780 |
Fund investments | Fair Value Measured at Net Asset Value Per Share | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 1,241,347 | $ 1,086,706 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | $ 3,091,686 | $ 3,091,686 | $ 2,494,954 | ||
Other liabilities | (1,032) | (1,032) | (5,331) | ||
Debt | 1,882,101 | 1,882,101 | 1,170,442 | ||
Long-term debt, fair value | 1,800,000 | 1,800,000 | 1,100,000 | ||
Net investment income | Term loans | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized gains (losses) recognized in earnings | 50,200 | $ (64,600) | 80,400 | $ (70,700) | |
Fair Value, Measurements, Recurring | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 3,091,686 | 3,091,686 | 2,494,954 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 171,155 | 171,155 | 166,780 | ||
Other liabilities | (475) | (475) | (1,832) | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Private equity funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 71,155 | 71,155 | 66,780 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Term loans | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 100,000 | 100,000 | 100,000 | ||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts, group two | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other liabilities | (475) | (475) | (1,832) | ||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Fair Value, Measurements, Recurring | Private equity funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 71,155 | 71,155 | 66,780 | ||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Fair Value, Measurements, Recurring | Term loans | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | $ 100,000 | $ 100,000 | $ 100,000 | ||
U.S. treasuries | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 4.50% | 4.50% | 4.30% | ||
Corporate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 6.40% | 6.40% | 6.30% | ||
Agencies | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 5.10% | 5.10% | 4.60% | ||
Non-U.S. government | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 4.80% | 4.80% | 4.70% | ||
Residential mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 5.50% | 5.50% | 5.40% | ||
Weighted average life | 8 years 1 month 6 days | 8 years 7 months 6 days | |||
Commercial mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 8.60% | 8.60% | 7.40% | ||
Weighted average life | 2 years 4 months 24 days | 3 years 2 months 12 days | |||
Asset-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 7.40% | 7.40% | 7.40% | ||
Weighted average life | 4 years 7 months 6 days | 5 years 2 months 12 days | |||
Short term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 5.10% | 5.10% | 4% | ||
Other Short Term Investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 5.10% | 5.10% | 4.20% | ||
Private credit funds | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 5 years | ||||
Private credit funds | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 10 years | ||||
Private equity funds | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 5 years | ||||
Private equity funds | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 10 years |
FAIR VALUE MEASUREMENTS - Quant
FAIR VALUE MEASUREMENTS - Quantitative Information Used as Level 3 Inputs (Details) $ in Thousands | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | $ 3,091,686 | $ 2,494,954 |
Other liabilities | (1,032) | (5,331) |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 3,091,686 | 2,494,954 |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 25,457,120 | 22,175,694 |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other liabilities | (475) | (1,832) |
Fair Value, Measurements, Recurring | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 171,155 | 166,780 |
Other liabilities | (475) | (1,832) |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 170,680 | 164,948 |
Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other liabilities | (475) | (1,832) |
Fair Value, Measurements, Recurring | Direct private equity investments | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 71,155 | 66,780 |
Fair Value, Measurements, Recurring | Direct private equity investments | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 71,155 | 66,780 |
Fair Value, Measurements, Recurring | Term loans | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 100,000 | 100,000 |
Fair Value, Measurements, Recurring | Term loans | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 100,000 | 100,000 |
Fair Value, Measurements, Recurring | Term loans | Discounted cash flow | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | $ 100,000 | $ 100,000 |
Discount rate | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 0.040 | 0.040 |
Discount rate | Fair Value, Measurements, Recurring | Direct private equity investments | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.100 | 0.075 |
Liquidity discount | Fair Value, Measurements, Recurring | Direct private equity investments | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.150 | 0.150 |
Credit spread adjustment | Fair Value, Measurements, Recurring | Term loans | Discounted cash flow | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.002 | 0.002 |
Risk premium | Fair Value, Measurements, Recurring | Term loans | Discounted cash flow | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.026 | 0.026 |
Net undiscounted cash flows | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 12,389,000 | 14,734,000 |
Expected loss ratio | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 0.029 | 0.058 |
FAIR VALUE MEASUREMENTS - Ass_2
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | $ 166,420 | $ 161,114 | $ 164,948 | $ 158,496 |
Total foreign exchange gains (losses) | 13 | (6) | (10) | |
Purchases | 1,666 | 20,755 | 1,366 | 30,474 |
Settlements | (455) | |||
Balance at end of the period | 170,680 | 178,546 | 170,680 | 178,546 |
Included in net investment income | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 62 | 0 | 124 | 605 |
Included in net realized and unrealized gains (losses) on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 3,548 | (3,603) | 4,257 | (11,753) |
Included in other income (loss) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | (1,029) | 280 | (9) | 1,189 |
Direct private equity investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | 67,532 | 80,213 | 66,780 | 88,373 |
Total foreign exchange gains (losses) | 13 | (6) | (10) | |
Purchases | 0 | 5,000 | 0 | 5,000 |
Settlements | 0 | |||
Balance at end of the period | 71,155 | 81,610 | 71,155 | 81,610 |
Direct private equity investments | Included in net investment income | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 62 | 0 | 124 | 0 |
Direct private equity investments | Included in net realized and unrealized gains (losses) on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 3,548 | (3,603) | 4,257 | (11,753) |
Direct private equity investments | Included in other income (loss) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Term loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | 100,000 | 85,000 | 100,000 | 74,850 |
Total foreign exchange gains (losses) | 0 | 0 | 0 | |
Purchases | 0 | 15,000 | 0 | 25,000 |
Settlements | (455) | |||
Balance at end of the period | 100,000 | 100,000 | 100,000 | 100,000 |
Term loans | Included in net investment income | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 0 | 0 | 0 | 605 |
Term loans | Included in net realized and unrealized gains (losses) on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Term loans | Included in other income (loss) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets and (liabilities) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | (1,112) | (4,099) | (1,832) | (4,727) |
Total foreign exchange gains (losses) | 0 | 0 | 0 | |
Purchases | 1,666 | 755 | 1,366 | 474 |
Settlements | 0 | |||
Balance at end of the period | (475) | (3,064) | (475) | (3,064) |
Other assets and (liabilities) | Included in net investment income | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets and (liabilities) | Included in net realized and unrealized gains (losses) on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets and (liabilities) | Included in other income (loss) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Included in earnings | $ (1,029) | $ 280 | $ (9) | $ 1,189 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of the Balances Company Has Elected to Account For at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Other investments | $ 3,091,686 | $ 2,494,954 |
Other assets | 557 | 3,499 |
Other liabilities | $ 1,032 | $ 5,331 |
FAIR VALUE MEASUREMENTS - Compa
FAIR VALUE MEASUREMENTS - Company's Portfolio of Other Investments Measured Using Net Asset Valuations (Details) - Fair Value Measured at Net Asset Value Per Share - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 1,241,347 | $ 1,086,706 |
Unfunded Commitments | 1,163,839 | 1,207,457 |
Private credit funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 876,010 | 771,383 |
Unfunded Commitments | 628,000 | 714,302 |
Private equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 365,337 | 315,323 |
Unfunded Commitments | $ 535,839 | $ 493,155 |
FAIR VALUE MEASUREMENTS - Uncon
FAIR VALUE MEASUREMENTS - Unconsolidated Investments Holding a Variable Interest (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, Maximum exposure to loss | $ 2,171,146 | $ 2,064,878 |
Carrying amount | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, Maximum exposure to loss | 1,078,812 | 916,248 |
Unfunded Commitments | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, Maximum exposure to loss | $ 1,092,334 | $ 1,148,630 |
REINSURANCE - Effect of Reinsur
REINSURANCE - Effect of Reinsurance and Retrocessional Activity on Premiums Written and Earned and on Net Claims and Claim Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Premiums Written | ||||
Direct | $ 278,695 | $ 338,761 | $ 451,391 | $ 639,866 |
Assumed | 2,372,926 | 2,125,878 | 4,990,491 | 4,767,737 |
Ceded | (455,818) | (601,023) | (982,376) | (1,378,770) |
Net premiums written | 2,195,803 | 1,863,616 | 4,459,506 | 4,028,833 |
Premiums Earned | ||||
Direct | 281,437 | 278,609 | 535,456 | 521,370 |
Assumed | 1,903,299 | 1,610,214 | 3,746,968 | 3,300,482 |
Ceded | (399,474) | (432,440) | (816,612) | (879,044) |
Net premiums earned | 1,785,262 | 1,456,383 | 3,465,812 | 2,942,808 |
Claims and Claim Expenses | ||||
Gross claims and claim expenses incurred | 1,089,656 | 799,218 | 2,049,360 | 1,816,773 |
Claims and claim expenses recovered | (158,445) | (92,979) | (316,949) | (268,801) |
Net claims and claim expenses incurred | $ 931,211 | $ 706,239 | $ 1,732,411 | $ 1,547,972 |
REINSURANCE - Narrative (Detail
REINSURANCE - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Ceded Credit Risk [Line Items] | ||||||
Premiums receivable | $ 6,490,886 | $ 5,139,471 | ||||
Premium receivable, allowance for credit loss | 3,151 | 4,606 | $ 3,371 | $ 4,350 | $ 2,776 | $ 2,776 |
Reinsurance recoverable | 4,700,000 | 4,700,000 | ||||
Reinsurance recoverable, allowance for credit loss | $ 11,456 | $ 12,169 | $ 11,504 | $ 9,005 | $ 8,344 | $ 8,344 |
Reinsurer Concentration Risk | Reinsurance recoverable | Customer One | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 17.90% | 20.80% | ||||
Reinsurer Concentration Risk | Reinsurance recoverable | Customer Two | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 9.60% | 7% | ||||
Reinsurer Concentration Risk | Reinsurance recoverable | Customer Three | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 6.40% | 5.40% | ||||
Customer Concentration Risk | Allowance for reinsurance recoverable | Customer One | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 14% | 14.30% | ||||
Customer Concentration Risk | Allowance for reinsurance recoverable | Customer Two | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 11.30% | 9.10% | ||||
Customer Concentration Risk | Allowance for reinsurance recoverable | Customer Three | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 6.90% | 8% | ||||
Ceded Credit Risk, Secured | Reinsurer Concentration Risk | Reinsurance recoverable | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 46.60% | 47.20% | ||||
Ceded Credit Risk, Unsecured | Reinsurer Concentration Risk | Reinsurance recoverable | Standard & Poor's, A- Rating | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 52.70% | 52% | ||||
Ceded Credit Risk, Unsecured | Reinsurer Concentration Risk | Reinsurance recoverable | Standard & Poor's, BBB Rating | ||||||
Ceded Credit Risk [Line Items] | ||||||
Concentration risk, percentage | 0.70% | 0.80% |
REINSURANCE - Schedule of Activ
REINSURANCE - Schedule of Activity in the Allowance Recorded Against Premium Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 3,371 | $ 2,776 | $ 4,606 | $ 2,776 |
Provision for (release of) allowance | (220) | 1,574 | (1,455) | 1,574 |
Ending balance | $ 3,151 | $ 4,350 | $ 3,151 | $ 4,350 |
REINSURANCE - Schedule of Act_2
REINSURANCE - Schedule of Activity in the Allowance Recorded Against Reinsurance Recoverable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 11,504 | $ 8,344 | $ 12,169 | $ 8,344 |
Provision for (release of) allowance | (48) | 661 | (713) | 661 |
Ending balance | $ 11,456 | $ 9,005 | $ 11,456 | $ 9,005 |
RESERVE FOR CLAIMS AND CLAIM _3
RESERVE FOR CLAIMS AND CLAIM EXPENSES - Claims and Claim Expense Reserves by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | $ 3,979,089 | $ 3,821,053 | |
Additional Case Reserves | 2,278,745 | 2,176,884 | |
IBNR | 9,880,294 | 9,894,636 | |
Gross reserve for claims and claim expenses | 16,138,128 | 15,892,573 | $ 13,442,806 |
Property | Operating Segments | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 2,011,450 | 1,956,688 | |
Additional Case Reserves | 2,074,234 | 2,008,891 | |
IBNR | 2,847,946 | 3,570,253 | |
Gross reserve for claims and claim expenses | 6,933,630 | 7,535,832 | |
Casualty and Specialty | Operating Segments | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 1,967,639 | 1,864,365 | |
Additional Case Reserves | 204,511 | 167,993 | |
IBNR | 7,032,348 | 6,324,383 | |
Gross reserve for claims and claim expenses | $ 9,204,498 | $ 8,356,741 |
RESERVE FOR CLAIMS AND CLAIM _4
RESERVE FOR CLAIMS AND CLAIM EXPENSES - Schedule of Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period | $ 11,181,648 | $ 9,025,961 | |||
Net incurred related to: | |||||
Current year | $ 963,309 | $ 749,196 | 1,869,261 | 1,608,762 | |
Prior years | (32,098) | (42,957) | (136,850) | (60,790) | |
Total net incurred | 931,211 | 706,239 | 1,732,411 | 1,547,972 | |
Net paid related to: | |||||
Current year | 92,909 | 41,124 | |||
Prior years | 1,406,684 | 1,129,979 | |||
Total net paid | 1,499,593 | 1,171,103 | |||
Foreign exchange | 34,311 | (166,483) | |||
Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period | 11,448,777 | 9,236,347 | 11,448,777 | 9,236,347 | |
Reinsurance recoverable as of end of period | 4,689,351 | 4,206,459 | 4,689,351 | 4,206,459 | $ 4,710,925 |
Reserve for claims and claim expenses as of end of period | $ 16,138,128 | $ 13,442,806 | $ 16,138,128 | $ 13,442,806 |
RESERVE FOR CLAIMS AND CLAIM _5
RESERVE FOR CLAIMS AND CLAIM EXPENSES - Prior Year Development of the Reserve for Net Claims and Claim Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | $ (32,098) | $ (42,957) | $ (136,850) | $ (60,790) |
Property | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (113,332) | (51,810) | ||
Property | Large catastrophe events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (73,780) | (67,344) | ||
Property | 2022 Weather-Related Large Losses | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | 25,994 | |||
Property | 2021 Weather-Related Large Lossses | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (31,000) | 4,385 | ||
Property | 2020 Weather-Related Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (3,077) | (10,887) | ||
Property | 2019 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (22,636) | (25,821) | ||
Property | 2018 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (24,059) | (10,300) | ||
Property | 2017 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (18,382) | (22,143) | ||
Property | Other | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (620) | (2,578) | ||
Property | Small catastrophe events and attritional loss movements | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (39,552) | 15,534 | ||
Property | Other small catastrophe events and attritional loss movements | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (39,552) | 15,534 | ||
Property | Operating Segments | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (31,639) | (35,052) | (113,332) | (51,810) |
Casualty and Specialty | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (23,518) | (8,980) | ||
Casualty and Specialty | Actuarial methods - actual reported claims less than expected claims | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | (26,428) | (27,315) | ||
Casualty and Specialty | Actuarial assumption changes | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | 2,910 | 18,335 | ||
Casualty and Specialty | Operating Segments | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net (favorable) adverse development of prior accident years net claims and claim expenses | $ (459) | $ (7,905) | $ (23,518) | $ (8,980) |
DEBT AND CREDIT FACILITIES - Su
DEBT AND CREDIT FACILITIES - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 05, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,800,000 | $ 1,100,000 | |
Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,808,755 | 1,110,649 | |
Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,882,101 | 1,170,442 | |
Senior Notes | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,808,755 | 1,080,649 | |
Senior Notes | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,882,101 | 1,140,442 | |
Senior Notes | 5.750% Senior Notes due 2033 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.75% | 5.75% | |
Senior Notes | 5.750% Senior Notes due 2033 | RenaissanceRe Finance, Inc. | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 736,995 | 0 | |
Senior Notes | 5.750% Senior Notes due 2033 | RenaissanceRe Finance, Inc. | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 740,620 | 0 | |
Senior Notes | 3.600% Senior Notes due 2029 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.60% | ||
Senior Notes | 3.600% Senior Notes due 2029 | RenaissanceRe Finance, Inc. | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 355,720 | 362,644 | |
Senior Notes | 3.600% Senior Notes due 2029 | RenaissanceRe Finance, Inc. | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 394,676 | 394,221 | |
Senior Notes | 3.450% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.45% | ||
Senior Notes | 3.450% Senior Notes due 2027 | RenaissanceRe Finance, Inc. | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 280,005 | 280,506 | |
Senior Notes | 3.450% Senior Notes due 2027 | RenaissanceRe Finance, Inc. | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 298,022 | 297,775 | |
Senior Notes | 3.700% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.70% | ||
Senior Notes | 3.700% Senior Notes due 2025 | RenaissanceRe Finance, Inc. | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 290,751 | 290,874 | |
Senior Notes | 3.700% Senior Notes due 2025 | RenaissanceRe Finance, Inc. | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 299,351 | 299,168 | |
Senior Notes | 4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.75% | ||
Senior Notes | 4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 145,284 | 146,625 | |
Senior Notes | 4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | 149,432 | 149,278 | |
Line of Credit | Medici Revolving Credit Facility | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 30,000 | |
Line of Credit | Medici Revolving Credit Facility | Carrying value | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 30,000 |
DEBT AND CREDIT FACILITIES - Na
DEBT AND CREDIT FACILITIES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 05, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 22, 2023 | |
Debt Instrument [Line Items] | ||||
Issuance of debt, net of expenses | $ 741,597 | $ 0 | ||
5.750% Senior Notes due 2033 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | ||
Face amount | $ 750,000 | |||
Issuance of debt, net of expenses | $ 741,000 | |||
Debt instrument, redemption price, percentage | 101% | |||
Secured Bilateral Facility | Letter of Credit | Wells Fargo | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150,000 |
DEBT AND CREDIT FACILITIES - Sc
DEBT AND CREDIT FACILITIES - Schedule of Credit Facilities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Credit facilities issued or drawn | $ 1,167,891 |
Line of Credit | RenaissanceRe Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Credit facilities issued or drawn | 0 |
Line of Credit | RenaissanceRe Revolving Credit Facility | Medici Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Credit facilities issued or drawn | 0 |
Line of Credit | Letter of Credit | Funds at Lloyd’s Letter of Credit Facility | |
Line of Credit Facility [Line Items] | |
Credit facilities issued or drawn | 275,000 |
Line of Credit | Letter of Credit | Secured Bilateral Facility | |
Line of Credit Facility [Line Items] | |
Credit facilities issued or drawn | 395,583 |
Line of Credit | Letter of Credit | Unsecured Bilateral Facility | |
Line of Credit Facility [Line Items] | |
Credit facilities issued or drawn | $ 497,308 |
NONCONTROLLING INTERESTS - Sche
NONCONTROLLING INTERESTS - Schedule of Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Redeemable noncontrolling interests | $ 5,676,262 | $ 5,676,262 | $ 4,535,389 | |||||
Net income (loss) attributable to redeemable noncontrolling interest | 174,907 | $ 49,331 | 442,291 | $ 37,419 | ||||
DaVinciRe Holdings Ltd. | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Redeemable noncontrolling interests | 2,267,448 | 1,762,677 | 2,267,448 | 1,762,677 | $ 2,234,541 | 1,740,300 | $ 1,775,503 | $ 1,499,451 |
Net income (loss) attributable to redeemable noncontrolling interest | 59,527 | 58,822 | 225,609 | 33,499 | ||||
Medici | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Redeemable noncontrolling interests | 1,540,520 | 1,052,560 | 1,540,520 | 1,052,560 | 1,307,741 | 1,036,218 | 941,912 | 856,820 |
Net income (loss) attributable to redeemable noncontrolling interest | 62,190 | (26,887) | 107,259 | (32,174) | ||||
Vermeer Reinsurance Ltd. | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Redeemable noncontrolling interests | 1,590,408 | 1,269,417 | 1,590,408 | 1,269,417 | 1,538,245 | 1,490,840 | 1,246,480 | 1,197,782 |
Net income (loss) attributable to redeemable noncontrolling interest | 52,163 | 22,937 | 99,568 | 41,635 | ||||
Fontana | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Redeemable noncontrolling interests | 277,886 | 268,143 | 277,886 | 268,143 | $ 276,859 | $ 268,031 | $ 0 | $ 0 |
Net income (loss) attributable to redeemable noncontrolling interest | $ 1,027 | $ (5,541) | $ 9,855 | $ (5,541) |
NONCONTROLLING INTERESTS - Narr
NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Apr. 01, 2022 | |
Third-Party Investors | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redemption of shares from redeemable noncontrolling interest | $ 77,500,000 | $ 161,600,000 | ||||
DaVinci Reinsurance Ltd. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | 275,000,000 | $ 102,900,000 | ||||
DavinciRe Third-Party Investors | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Proceeds from noncontrolling interests | 0 | |||||
Payments to noncontrolling interests | 77,500,000 | |||||
Medici | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Proceeds from noncontrolling interests | 405,100,000 | |||||
Payments to noncontrolling interests | $ 17,600,000 | |||||
DaVinci Reinsurance Ltd. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Parent company ownership in redeemable noncontrolling interest | 26.30% | 33.80% | 26.30% | 33.80% | 30.90% | |
Medici | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Parent company ownership in redeemable noncontrolling interest | 11.10% | 13% | 11.10% | 13% | ||
Fontana | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Parent company ownership in redeemable noncontrolling interest | 31.60% | 31.60% | 31.60% | 31.60% | ||
DaVinciRe Holdings Ltd. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 250,000,000 | $ 500,000,000 | ||||
Redemption of shares from redeemable noncontrolling interest | $ 27,320,000 | $ 74,141,000 | 77,495,000 | 161,569,000 | ||
DaVinciRe Holdings Ltd. | Third-Party Investors | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | 102,200,000 | 284,800,000 | ||||
DaVinciRe Holdings Ltd. | RenaissanceRe Holdings Ltd. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 147,800,000 | 215,200,000 | ||||
DaVinciRe Holdings Ltd. | Maximum | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Share repurchase requests, limit | 25% | 25% | ||||
Medici | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 170,589,000 | 157,739,000 | $ 414,691,000 | 325,026,000 | ||
Redemption of shares from redeemable noncontrolling interest | $ 0 | 20,204,000 | $ 17,648,000 | 97,112,000 | ||
Redemption provision, notice period | 30 days | |||||
Medici | Third-Party Investors | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 439,700,000 | |||||
Medici | RenaissanceRe Holdings Ltd. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 25,100,000 | |||||
Medici | Vermeer Reinsurance Ltd. | Voting, Non-participating Shares | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Parent company ownership in redeemable noncontrolling interest | 100% | 100% | ||||
PFZW | Vermeer Reinsurance Ltd. | Participating, Non-voting Common Shares | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Parent company ownership in redeemable noncontrolling interest | 100% | 100% | ||||
Vermeer Reinsurance Ltd. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 0 | 0 | $ 0 | 30,000,000 | ||
Fontana | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | $ 0 | 273,684,000 | $ 0 | 273,684,000 | ||
Initial commitments | $ 475,000,000 | $ 475,000,000 | ||||
Commitments funded | $ 400,000,000 |
NONCONTROLLING INTERESTS - Sc_2
NONCONTROLLING INTERESTS - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Activity in redeemable noncontrolling interest | ||||
Beginning balance | $ 4,535,389,000 | |||
Net income (loss) attributable to redeemable noncontrolling interest | $ 174,907,000 | $ 49,331,000 | 442,291,000 | $ 37,419,000 |
Ending balance | 5,676,262,000 | 5,676,262,000 | ||
DaVinciRe Holdings Ltd. | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 2,234,541,000 | 1,775,503,000 | 1,740,300,000 | 1,499,451,000 |
Redemption of shares from redeemable noncontrolling interests | (27,320,000) | (74,141,000) | (77,495,000) | (161,569,000) |
Sale of shares to redeemable noncontrolling interests, net of adjustments | 250,000,000 | 500,000,000 | ||
Net income (loss) attributable to redeemable noncontrolling interest | 59,527,000 | 58,822,000 | 225,609,000 | 33,499,000 |
Ending balance | 2,267,448,000 | 1,762,677,000 | 2,267,448,000 | 1,762,677,000 |
DaVinciRe Holdings Ltd. | Third-Party Investors And RenaissanceRe | ||||
Activity in redeemable noncontrolling interest | ||||
Sale of shares to redeemable noncontrolling interests, net of adjustments | 700,000 | 2,493,000 | 379,034,000 | 391,296,000 |
Medici | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 1,307,741,000 | 941,912,000 | 1,036,218,000 | 856,820,000 |
Redemption of shares from redeemable noncontrolling interests | 0 | (20,204,000) | (17,648,000) | (97,112,000) |
Sale of shares to redeemable noncontrolling interests, net of adjustments | 170,589,000 | 157,739,000 | 414,691,000 | 325,026,000 |
Net income (loss) attributable to redeemable noncontrolling interest | 62,190,000 | (26,887,000) | 107,259,000 | (32,174,000) |
Ending balance | 1,540,520,000 | 1,052,560,000 | 1,540,520,000 | 1,052,560,000 |
Vermeer Reinsurance Ltd. | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 1,538,245,000 | 1,246,480,000 | 1,490,840,000 | 1,197,782,000 |
Sale of shares to redeemable noncontrolling interests, net of adjustments | 0 | 0 | 0 | 30,000,000 |
Net income (loss) attributable to redeemable noncontrolling interest | 52,163,000 | 22,937,000 | 99,568,000 | 41,635,000 |
Ending balance | 1,590,408,000 | 1,269,417,000 | 1,590,408,000 | 1,269,417,000 |
Fontana | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 276,859,000 | 0 | 268,031,000 | 0 |
Sale of shares to redeemable noncontrolling interests, net of adjustments | 0 | 273,684,000 | 0 | 273,684,000 |
Net income (loss) attributable to redeemable noncontrolling interest | 1,027,000 | (5,541,000) | 9,855,000 | (5,541,000) |
Ending balance | $ 277,886,000 | $ 268,143,000 | $ 277,886,000 | $ 268,143,000 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jan. 10, 2023 USD ($) note | Jul. 26, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||||||||||
Assets | $ 41,399,915,000 | $ 41,399,915,000 | $ 36,552,878,000 | |||||||
Liabilities | 28,320,840,000 | 28,320,840,000 | 26,692,215,000 | |||||||
Investments in other ventures, under equity method | 89,505,000 | 89,505,000 | 79,750,000 | |||||||
Redeemable noncontrolling interests | 5,676,262,000 | 5,676,262,000 | 4,535,389,000 | |||||||
Ceded premiums written | 455,818,000 | $ 601,023,000 | 982,376,000 | $ 1,378,770,000 | ||||||
Ceded premiums earned | 399,474,000 | 432,440,000 | 816,612,000 | 879,044,000 | ||||||
Vermeer Reinsurance Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Redeemable noncontrolling interests | 1,590,408,000 | $ 1,538,245,000 | 1,269,417,000 | 1,590,408,000 | 1,269,417,000 | 1,490,840,000 | $ 1,246,480,000 | $ 1,197,782,000 | ||
Fontana | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Redeemable noncontrolling interests | 277,886,000 | 276,859,000 | $ 268,143,000 | 277,886,000 | 268,143,000 | 268,031,000 | $ 0 | $ 0 | ||
Variable Interest Entity, Primary Beneficiary | Upsilon Diversified | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investments in other ventures, under equity method | 1,400,000 | 1,400,000 | 1,900,000 | |||||||
Variable Interest Entity, Primary Beneficiary | NOC1 | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investments in other ventures, under equity method | 1,500,000 | 1,500,000 | ||||||||
Variable Interest Entity, Primary Beneficiary | Upsilon RFO Re Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 3,000,000,000 | 3,000,000,000 | 3,700,000,000 | |||||||
Liabilities | 3,000,000,000 | 3,000,000,000 | 3,700,000,000 | |||||||
Net assets | 133,200,000 | 133,200,000 | 165,300,000 | |||||||
Variable Interest Entity, Primary Beneficiary | Upsilon Diversified | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 956,300,000 | 956,300,000 | 1,200,000,000 | |||||||
Liabilities | 78,800,000 | 78,800,000 | 32,100,000 | |||||||
Variable Interest Entity, Primary Beneficiary | Upsilon Diversified | Upsilon RFO Re Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investment owned, fair value | 952,400,000 | 952,400,000 | 1,200,000,000 | |||||||
Variable Interest Entity, Primary Beneficiary | NOC1 | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 153,100,000 | 153,100,000 | ||||||||
Liabilities | 200,000 | 200,000 | ||||||||
Variable Interest Entity, Primary Beneficiary | Vermeer Reinsurance Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 2,000,000,000 | 2,000,000,000 | 1,600,000,000 | |||||||
Liabilities | 388,700,000 | 388,700,000 | 144,900,000 | |||||||
Redeemable noncontrolling interests | 1,600,000,000 | 1,600,000,000 | 1,500,000,000 | |||||||
Variable Interest Entity, Primary Beneficiary | Fontana | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 1,100,000,000 | 1,100,000,000 | 711,000,000 | |||||||
Liabilities | 733,800,000 | 733,800,000 | 319,200,000 | |||||||
Redeemable noncontrolling interests | 277,900,000 | 277,900,000 | 268,000,000 | |||||||
Variable Interest Entity, Primary Beneficiary | Third Party Investor | Upsilon RFO Re Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | 489,600,000 | 188,100,000 | ||||||||
Net assets | 900,000,000 | 900,000,000 | 1,200,000,000 | |||||||
Variable Interest Entity, Primary Beneficiary | Third Party Investor | Upsilon RFO Re Ltd. | Preference shares | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | 39,800,000 | 89,000,000 | ||||||||
Variable Interest Entity, Primary Beneficiary | Third Party Investor | Upsilon Diversified | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | 420,800,000 | 143,500,000 | ||||||||
Variable Interest Entity, Primary Beneficiary | Third Party Investor | Upsilon Diversified | Preference shares | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | 30,000,000 | $ 82,500,000 | ||||||||
Variable Interest Entity, Primary Beneficiary | Third Party Investor | NOC1 | Preference shares | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | 151,500,000 | |||||||||
Variable Interest Entity, Primary Beneficiary | RenaissanceRe Holdings Ltd. | Upsilon RFO Re Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | $ 62,300,000 | |||||||||
Variable interest entity, ownership percentage | 13.10% | 12.70% | ||||||||
Variable Interest Entity, Primary Beneficiary | RenaissanceRe Holdings Ltd. | Upsilon RFO Re Ltd. | Preference shares | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | $ 10,200,000 | $ 10,000,000 | ||||||||
Variable Interest Entity, Primary Beneficiary | RenaissanceRe Holdings Ltd. | Upsilon Diversified | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | 700,000 | 0 | ||||||||
Variable Interest Entity, Primary Beneficiary | RenaissanceRe Holdings Ltd. | Upsilon Diversified | Preference shares | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | 100,000 | 0 | ||||||||
Variable Interest Entity, Primary Beneficiary | RenaissanceRe Holdings Ltd. | NOC1 | Preference shares | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | 1,500,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | Mona Lisa Re | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 463,500,000 | 463,500,000 | 654,800,000 | |||||||
Liabilities | 463,500,000 | 463,500,000 | 654,800,000 | |||||||
Number of notes issued | note | 2 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | Mona Lisa Re | Term loans | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investment in participating notes | 3,300,000 | 3,300,000 | 5,700,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Mona Lisa Re | Eighty Five Million Principal At Risk Variable Rate Note | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Face amount | $ 85,000,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | Mona Lisa Re | One Hundred Million Principal At Risk Variable Rate Note | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Face amount | $ 100,000,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | Mona Lisa Re | Four Hundred Million Principal At Risk Variable Rate Note | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Face amount | 400,000,000 | 400,000,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Langhorne Partners | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investments in other ventures, under equity method | $ 100,000 | 100,000 | $ 100,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | RenaissanceRe Holdings Ltd. | Langhorne Holdings LLC | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | $ 1,500,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | RenaissanceRe Holdings Ltd. | Langhorne Holdings LLC | Subsequent Event | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | $ 800,000 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | Renaissance Reinsurance Ltd. | Mona Lisa Re | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ceded premiums written | 18,300,000 | 25,100,000 | ||||||||
Ceded premiums earned | 16,000,000 | 19,500,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | DaVinci Reinsurance Ltd. | Mona Lisa Re | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ceded premiums written | 4,600,000 | 6,200,000 | ||||||||
Ceded premiums earned | 4,000,000 | $ 4,800,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Medici | Mona Lisa Re | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | $ 16,500,000 |
SHAREHOLDERS_ EQUITY (Details)
SHAREHOLDERS’ EQUITY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2023 | Jun. 15, 2023 | May 26, 2023 | Mar. 31, 2023 | Mar. 15, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Aug. 02, 2022 | |
Class of Stock [Line Items] | ||||||||||
Dividends per common share (in dollars per share) | $ 0.38 | $ 0.37 | $ 0.76 | $ 0.74 | ||||||
Dividends on preference shares | $ (8,844,000) | $ (8,844,000) | $ (17,688,000) | $ (17,688,000) | ||||||
Dividends, common stock | $ (36,000,000) | $ (32,400,000) | ||||||||
Public Offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued (in shares) | 7,245,000 | |||||||||
Price of shares issued (in dollars per share) | $ 192 | |||||||||
Sale of stock, consideration received on transaction | $ 1,352,000,000 | |||||||||
Common Shares | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends paid per common share (in dollars per share) | $ 0.38 | $ 0.38 | ||||||||
Dividends per common share (in dollars per share) | $ 0.38 | $ 0.38 | ||||||||
Share repurchase program, authorized amount | $ 500,000,000 | |||||||||
Share repurchase program, shares repurchased (in shares) | 0 | |||||||||
Remaining authorized repurchase amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |||||||
Series F Preference Shares | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend rate, percentage | 5.75% | |||||||||
Liquidation preference per annum (in dollars per share) | $ 1,437.5 | $ 1,437.5 | $ 1,437.5 | |||||||
Liquidation preference quarterly (in dollars per share) | 359.375 | 359.375 | 359.375 | |||||||
Series F Preferred Shares, Depositary Shares | ||||||||||
Class of Stock [Line Items] | ||||||||||
Liquidation preference per annum (in dollars per share) | 1.4375 | 1.4375 | 1.4375 | |||||||
Liquidation preference quarterly (in dollars per share) | 0.359375 | 0.359375 | $ 0.359375 | |||||||
Series G Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividend rate, percentage | 4.20% | |||||||||
Liquidation preference per annum (in dollars per share) | 1,050 | 1,050 | $ 1,050 | |||||||
Liquidation preference quarterly (in dollars per share) | 262.50 | 262.50 | 262.50 | |||||||
Series G Preferred Shares, Depositary Shares | ||||||||||
Class of Stock [Line Items] | ||||||||||
Liquidation preference per annum (in dollars per share) | 1.05 | 1.05 | 1.05 | |||||||
Liquidation preference quarterly (in dollars per share) | $ 0.2625 | $ 0.2625 | $ 0.2625 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ 191,025 | $ (324,913) | $ 755,087 | $ (719,326) |
Amount allocated to participating common shareholders | (2,889) | (272) | (11,650) | (507) |
Net income (loss) allocated to RenaissanceRe common shareholders | $ 188,136 | $ (325,185) | $ 743,437 | $ (719,833) |
Denominator: | ||||
Denominator for basic income (loss) per RenaissanceRe common share - weighted average common shares (in shares) | 45,898 | 43,170 | 44,387 | 43,264 |
Per common share equivalents of non-vested shares (in shares) | 92 | 0 | 111 | 0 |
Denominator for diluted income (loss) per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions (in shares) | 45,990 | 43,170 | 44,498 | 43,264 |
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ 4.10 | $ (7.53) | $ 16.75 | $ (16.64) |
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | $ 4.09 | $ (7.53) | $ 16.71 | $ (16.64) |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 2,651,621 | $ 2,464,639 | $ 5,441,882 | $ 5,407,603 |
Net premiums written | 2,195,803 | 1,863,616 | 4,459,506 | 4,028,833 |
Net premiums earned | 1,785,262 | 1,456,383 | 3,465,812 | 2,942,808 |
Net claims and claim expenses incurred | 931,211 | 706,239 | 1,732,411 | 1,547,972 |
Acquisition expenses | 422,545 | 361,238 | 854,802 | 737,745 |
Operational expenses | 80,491 | 72,520 | 157,965 | 140,427 |
Underwriting income (loss) | 351,015 | 316,386 | 720,634 | 516,664 |
Net investment income | 292,662 | 107,211 | 547,040 | 190,902 |
Net foreign exchange gains (losses) | (13,488) | (50,821) | (27,991) | (66,307) |
Equity in earnings of other ventures | 7,700 | 7,383 | 17,230 | 993 |
Other income (loss) | 3,876 | 923 | (430) | 2,116 |
Net realized and unrealized gains (losses) on investments | (222,781) | (654,107) | 56,670 | (1,327,124) |
Corporate expenses | (23,371) | (12,352) | (36,214) | (24,854) |
Interest expense | (14,895) | (11,895) | (27,029) | (23,850) |
Income (loss) before taxes | 380,718 | (297,272) | 1,249,910 | (731,460) |
Income tax benefit (expense) | (5,942) | 30,534 | (34,844) | 67,241 |
Net (income) loss attributable to redeemable noncontrolling interests | (174,907) | (49,331) | (442,291) | (37,419) |
Dividends on preference shares | (8,844) | (8,844) | (17,688) | (17,688) |
Net income (loss) available (attributable) to RenaissanceRe common shareholders | 191,025 | (324,913) | 755,087 | (719,326) |
Net claims and claim expenses incurred – current accident year | 963,309 | 749,196 | 1,869,261 | 1,608,762 |
Net claims and claim expenses incurred – prior accident years | (32,098) | (42,957) | (136,850) | (60,790) |
Total net incurred | $ 931,211 | $ 706,239 | $ 1,732,411 | $ 1,547,972 |
Net claims and claim expense ratio – current accident year | 54% | 51.40% | 53.90% | 54.70% |
Net claims and claim expense ratio – prior accident years | (1.80%) | (2.90%) | (3.90%) | (2.10%) |
Net claims and claim expense ratio – calendar year | 52.20% | 48.50% | 50% | 52.60% |
Underwriting expense ratio | 28.10% | 29.80% | 29.20% | 29.80% |
Combined ratio | 80.30% | 78.30% | 79.20% | 82.40% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 0 | $ 0 | $ 0 | $ 0 |
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net claims and claim expenses incurred | 0 | 0 | 0 | 0 |
Acquisition expenses | 0 | 0 | 0 | 0 |
Operational expenses | 0 | 0 | 0 | 0 |
Underwriting income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 292,662 | 107,211 | 547,040 | 190,902 |
Net foreign exchange gains (losses) | (13,488) | (50,821) | (27,991) | (66,307) |
Equity in earnings of other ventures | 7,700 | 7,383 | 17,230 | 993 |
Other income (loss) | 3,876 | 923 | (430) | 2,116 |
Net realized and unrealized gains (losses) on investments | (222,781) | (654,107) | 56,670 | (1,327,124) |
Corporate expenses | (23,371) | (12,352) | (36,214) | (24,854) |
Interest expense | (14,895) | (11,895) | (27,029) | (23,850) |
Income tax benefit (expense) | (5,942) | 30,534 | (34,844) | 67,241 |
Net (income) loss attributable to redeemable noncontrolling interests | (174,907) | (49,331) | (442,291) | (37,419) |
Dividends on preference shares | (8,844) | (8,844) | (17,688) | (17,688) |
Net claims and claim expenses incurred – current accident year | 0 | 0 | 0 | 0 |
Net claims and claim expenses incurred – prior accident years | 0 | 0 | 0 | 0 |
Total net incurred | 0 | 0 | 0 | 0 |
Property | ||||
Segment Reporting Information [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (113,332) | (51,810) | ||
Property | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 1,402,606 | 1,218,321 | 2,706,805 | 2,561,829 |
Net premiums written | 1,144,655 | 887,975 | 2,164,484 | 1,778,141 |
Net premiums earned | 758,686 | 623,581 | 1,446,106 | 1,242,172 |
Net claims and claim expenses incurred | 281,993 | 171,924 | 469,602 | 431,685 |
Acquisition expenses | 140,606 | 137,567 | 285,925 | 264,663 |
Operational expenses | 55,077 | 49,627 | 110,890 | 96,559 |
Underwriting income (loss) | 281,010 | 264,463 | 579,689 | 449,265 |
Net claims and claim expenses incurred – current accident year | 313,632 | 206,976 | 582,934 | 483,495 |
Net claims and claim expenses incurred – prior accident years | (31,639) | (35,052) | (113,332) | (51,810) |
Total net incurred | $ 281,993 | $ 171,924 | $ 469,602 | $ 431,685 |
Net claims and claim expense ratio – current accident year | 41.30% | 33.20% | 40.30% | 38.90% |
Net claims and claim expense ratio – prior accident years | (4.10%) | (5.60%) | (7.80%) | (4.10%) |
Net claims and claim expense ratio – calendar year | 37.20% | 27.60% | 32.50% | 34.80% |
Underwriting expense ratio | 25.80% | 30% | 27.40% | 29% |
Combined ratio | 63% | 57.60% | 59.90% | 63.80% |
Casualty and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (23,518) | $ (8,980) | ||
Casualty and Specialty | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 1,249,015 | $ 1,246,318 | 2,735,077 | 2,845,774 |
Net premiums written | 1,051,148 | 975,641 | 2,295,022 | 2,250,692 |
Net premiums earned | 1,026,576 | 832,802 | 2,019,706 | 1,700,636 |
Net claims and claim expenses incurred | 649,218 | 534,315 | 1,262,809 | 1,116,287 |
Acquisition expenses | 281,939 | 223,671 | 568,877 | 473,082 |
Operational expenses | 25,414 | 22,893 | 47,075 | 43,868 |
Underwriting income (loss) | 70,005 | 51,923 | 140,945 | 67,399 |
Net claims and claim expenses incurred – current accident year | 649,677 | 542,220 | 1,286,327 | 1,125,267 |
Net claims and claim expenses incurred – prior accident years | (459) | (7,905) | (23,518) | (8,980) |
Total net incurred | $ 649,218 | $ 534,315 | $ 1,262,809 | $ 1,116,287 |
Net claims and claim expense ratio – current accident year | 63.30% | 65.10% | 63.70% | 66.20% |
Net claims and claim expense ratio – prior accident years | (0.10%) | (0.90%) | (1.20%) | (0.60%) |
Net claims and claim expense ratio – calendar year | 63.20% | 64.20% | 62.50% | 65.60% |
Underwriting expense ratio | 30% | 29.60% | 30.50% | 30.40% |
Combined ratio | 93.20% | 93.80% | 93% | 96% |
DERIVATIVE INSTRUMENTS - Consol
DERIVATIVE INSTRUMENTS - Consolidated Balance Sheets and Fair Value of the Principal Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 25,307 | $ 44,421 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 25,307 | 44,421 |
Collateral Received | 0 | 0 |
Net Amount | 25,307 | 44,421 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 14,989 | 7,581 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 14,989 | 7,581 |
Collateral Pledged | 7,896 | 309 |
Net Amount | 7,093 | 7,272 |
Derivative instruments not designated as hedges | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 24,688 | 44,421 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 24,688 | 44,421 |
Collateral Received | 0 | 0 |
Net Amount | 24,688 | 44,421 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 14,989 | 6,388 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 14,989 | 6,388 |
Collateral Pledged | 7,896 | 309 |
Net Amount | 7,093 | 6,079 |
Derivative instruments not designated as hedges | Interest rate futures | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 370 | 387 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 370 | 387 |
Collateral Received | 0 | 0 |
Net Amount | 370 | 387 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 2,113 | 1,685 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 2,113 | 1,685 |
Collateral Pledged | 2,045 | 209 |
Net Amount | 68 | 1,476 |
Derivative instruments not designated as hedges | Foreign Currency Forward Contracts, Underwriting and Non-investment Operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 24,119 | 31,755 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 24,119 | 31,755 |
Collateral Received | 0 | 0 |
Net Amount | 24,119 | 31,755 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,027 | 1,160 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 4,027 | 1,160 |
Collateral Pledged | 0 | 0 |
Net Amount | 4,027 | 1,160 |
Derivative instruments not designated as hedges | Foreign currency forward contracts, investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 78 | 11,866 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 78 | 11,866 |
Collateral Received | 0 | 0 |
Net Amount | 78 | 11,866 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 2,998 | 2,165 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 2,998 | 2,165 |
Collateral Pledged | 0 | 0 |
Net Amount | 2,998 | 2,165 |
Derivative instruments not designated as hedges | Credit default swaps | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 121 | 413 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 121 | 413 |
Collateral Received | 0 | 0 |
Net Amount | 121 | 413 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 5,851 | 1,055 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 5,851 | 1,055 |
Collateral Pledged | 5,851 | 100 |
Net Amount | 0 | 955 |
Derivative instruments not designated as hedges | Equity futures | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 323 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | 323 | |
Collateral Pledged | 0 | |
Net Amount | 323 | |
Derivative instruments designated as hedges | Foreign currency forward contracts, investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 619 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Assets Presented in the Balance Sheet | 619 | |
Collateral Received | 0 | |
Net Amount | $ 619 | |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 1,193 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | 1,193 | |
Collateral Pledged | 0 | |
Net Amount | $ 1,193 |
DERIVATIVE INSTRUMENTS - Gain (
DERIVATIVE INSTRUMENTS - Gain (Loss) Recognized in the Consolidated Statements of Operations Related to its Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | $ (70,671) | $ (100,754) | $ (56,496) | $ (167,102) |
Derivative instruments not designated as hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (71,262) | (108,075) | (58,035) | (171,396) |
Derivative instruments not designated as hedges | Interest rate futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (47,030) | (14,699) | (21,547) | (43,486) |
Derivative instruments not designated as hedges | Foreign Currency Forward Contracts, Underwriting and Non-investment Operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 4,900 | (51,834) | 9,645 | (72,757) |
Derivative instruments not designated as hedges | Foreign currency forward contracts, investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (11,111) | 10,062 | (14,791) | 8,171 |
Derivative instruments not designated as hedges | Foreign currency option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 0 | (225) | 0 | (444) |
Derivative instruments not designated as hedges | Credit default swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (17,460) | (2,337) | (29,414) | (6,474) |
Derivative instruments not designated as hedges | Equity futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (561) | (49,042) | (1,928) | (56,406) |
Derivative instruments designated as hedges | Foreign currency forward contracts, investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) | $ 591 | $ 7,321 | $ 1,539 | $ 4,294 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - Derivative instruments not designated as hedges - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Interest rate futures | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 2,600,000,000 | $ 2,400,000,000 |
Interest rate futures | Short | ||
Derivative [Line Items] | ||
Notional amount | 700,000,000 | 500,000,000 |
Foreign Currency Forward Contracts, Underwriting and Non-investment Operations | Long | ||
Derivative [Line Items] | ||
Notional amount | 845,200,000 | 861,700,000 |
Foreign Currency Forward Contracts, Underwriting and Non-investment Operations | Short | ||
Derivative [Line Items] | ||
Notional amount | 183,200,000 | 172,400,000 |
Foreign currency forward contracts, investment operations | Long | ||
Derivative [Line Items] | ||
Notional amount | 383,200,000 | 225,600,000 |
Foreign currency forward contracts, investment operations | Short | ||
Derivative [Line Items] | ||
Notional amount | 98,700,000 | 86,300,000 |
Credit default swaps | Long | ||
Derivative [Line Items] | ||
Notional amount | 14,500,000 | 953,400,000 |
Credit default swaps | Short | ||
Derivative [Line Items] | ||
Notional amount | 1,000,000,000 | 13,100,000 |
Equity futures | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 116,000,000 | |
Equity futures | Short | ||
Derivative [Line Items] | ||
Notional amount | $ 0 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivative Instruments Designated as Hedges of a Net Investment in a Foreign Operation (Details) - Foreign Exchange Forward - Derivative instruments designated as hedges - Net Investment Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Weighted average of U.S. dollar equivalent of foreign denominated net assets (liabilities) | $ 59,020 | $ 79,933 | $ 59,348 | $ 83,769 |
Derivative gains (losses) | $ 591 | $ 7,321 | $ 1,539 | $ 4,294 |
ACQUISITION OF VALIDUS (Details
ACQUISITION OF VALIDUS (Details) - Validus Acquisition $ / shares in Units, $ in Millions | May 22, 2023 USD ($) $ / shares |
Restructuring Cost and Reserve [Line Items] | |
Net purchase price | $ 2,985 |
Cash consideration paid by RenaissanceRe as acquisition consideration | 2,735 |
Market value of RenaissanceRe common shares issued by RenaissanceRe to Tokio | $ 250 |
Business acquisition, share price ( in dollars per share) | $ / shares | $ 189.03 |
Business combination, estimated excess tangible book value threshold for future dividends | $ 2,100 |
AIG | |
Restructuring Cost and Reserve [Line Items] | |
Business combination, risk reward percentage | 95% |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jul. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
DaVinci Reinsurance Ltd. | ||||
Subsequent Event [Line Items] | ||||
Parent company ownership in redeemable noncontrolling interest | 26.30% | 33.80% | 30.90% | |
DaVinci Reinsurance Ltd. | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Parent company ownership in redeemable noncontrolling interest | 27.80% | |||
Third-Party Investors | ||||
Subsequent Event [Line Items] | ||||
Redemption of shares from redeemable noncontrolling interest | $ 77.5 | $ 161.6 | ||
Third-Party Investors | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Redemption of shares from redeemable noncontrolling interest | $ 45.8 |