RenaissanceRe announced that it achieved $2.5 billion in annual net income available to common shareholders and $1.8 billion in annual operating income available to common shareholders for the year 2023.
Throughout the year, RenaissanceRe racked up significant achievements. These included a return on average common equity of 40.5% and an operating return on average common equity of 29.3%. The company also saw growth of 57.9% in book value per share and a 47.6% growth in tangible book value per share plus change in accumulated dividends.
According to a Press release, RenaissanceRe demonstrated strong performance across its three drivers of profit, including underwriting income of $1.6 billion, net investment income of $1.2 billion, and fee income of $236.8 million. The combined ratio for the year was 77.9%, with an adjusted combined ratio of 77.1%. Additionally, the company successfully raised $1.2 billion of third-party capital in the Capital Partners unit, with an additional $494.8 million raised from third-party investors, from January 1, 2024.
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In Q4, the company saw an annualized return on average common equity of 83.5% and an annualized operating return on average common equity of 33.0%. In addition, there was a combined ratio of 76.0% and an adjusted combined ratio of 73.6%. Notably, fee income surged to $70.8 million, reflecting growth of 133.2% compared to Q4 2022. Net investment income also saw a substantial increase, reaching $377.0 million, marking a rise of 78.5% from Q4 2022.
Mark-to-market gains totaling $585.9 million were included in the net income available to common shareholders. An income tax benefit of $554.2 million was primarily attributed to the enactment of the Bermuda corporate income tax.
In November 2023, the company completed its acquisition of Validus Holdings, Ltd, Validus Specialty, LLC, and certain business assets from Talbot Underwriting Limited, integrating their operations into its consolidated statements through the year-end. During this period, gross premiums written decreased by $27.5 million, driven by reductions in other property and increases in catastrophe premiums. However, net premiums written decreased by $15.0 million, offset by adjustments in ceded premiums. The combined ratio improved significantly by 19.5 percentage points, primarily due to lower current accident year net losses.
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