RenaissanceRe declares dividend, renews share buyback program

This follows robust performance in the first quarter

RenaissanceRe declares dividend, renews share buyback program


By Jonalyn Cueto

RenaissanceRe Holdings Ltd. has declared a quarterly dividend of $0.39 per common share. This dividend will be paid on June 28, 2024, to shareholders of record as of June 14, 2024.

The board of directors has also renewed the company’s share repurchase program, raising the total current authorization to $500 million. This amount includes remaining funds from previous authorizations. The repurchase program will continue until the company has repurchased shares up to the authorized amount, unless terminated earlier by the board. Shares may be repurchased through open market purchases and privately negotiated transactions. The decision to repurchase shares will consider factors such as market price and the company’s capital needs.

Strong first quarter

The announcement follows RenaissanceRe’s first quarter 2024 earnings call on May 1, 2024. Kevin O’Donnell, CEO, highlighted during the call the company’s strong performance, reporting an annualized operating return on average common equity of 29%.

“This is a great start to the year and builds on our momentum following an equally strong finish to last year,” O’Donnell said. The company attributed its success to aligned drivers of profit, including underwriting fees and investment income. The acquisition of Validus Re has significantly contributed to this performance, O’Donnell noted, with plans to retain at least $3 billion of Validus premium. O’Donnell also emphasized that the integration process was on track and expected to be highly accretive to shareholders.

During the earnings call, CFO Bob Qutub reported operating income of $636 million for the quarter, driven by superior results across all three profit drivers: underwriting income of $541 million, fees of $84 million, and retained net investment income of $267 million. Qutub noted: “The strong returns in the quarter were driven by superior results across all three drivers of profit.” He also mentioned that the company remains focused on delivering the combined RenRe Validus portfolio through midyear renewals.

RenaissanceRe provides property, casualty, and specialty reinsurance and insurance solutions. Established in 1993, it operates in Bermuda, Australia, Canada, Ireland, Singapore, Switzerland, the UK, and the US.

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