RenaissanceRe posted a stronger underwriting result in the second quarter of 2026 than a year earlier, even as net income fell to US$654.2 million from US$826.5 million on lower investment gains. The group posted a 72.8% combined ratio and US$599.1 million in underwriting income, with the property segment producing a 27.1% combined ratio while the casualty and specialty book remained loss-making at 103.3%.
Gross premiums written across both segments fell year on year. Property gross premiums written declined 10.4% to US$1.55 billion, driven by a 13.9% reduction in the catastrophe class as rate reductions partially offset growth opportunities. Casualty and specialty gross premiums written fell 14.6% to US$1.44 billion on exposure reductions and rate pressure in cyber.
Net premiums written dropped 25.7% in casualty and specialty to US$1.07 billion. Part of that decline reflects increased retrocessional purchases - reinsurance RenaissanceRe itself buys to offload risk from its own book - which reduces the premium the group retains net even when gross premiums written hold up better. Total net premiums earned were US$2.2 billion for the quarter.
Net favourable prior-year development of US$199.4 million supported the group result. Property generated US$257.5 million of favourable development from prior large loss events in 2021, 2022, 2024 and 2025. That gain was partially offset by US$58 million of adverse development in casualty and specialty, of which US$54 million related to a reclassification of previously reported Baltimore Bridge Collapse loss estimates from property.
Net claims and claim expenses incurred totalled US$942.4 million for the quarter, down from US$1.04 billion in Q2 2025. The current accident year net claims ratio across the group was 51.9%, with the property segment's current year ratio at 28.4%.
The Q2 result follows a similarly underwriting-anchored first quarter in which RenaissanceRe posted US$588.8 million in underwriting income and a 73.0% combined ratio, reversing a US$25.3 million net loss in Q1 2025 when California wildfires weighed on results.
Net investment income rose 4.7% to US$432.5 million. The annualised portfolio yield held at 5.0%, supported by higher average invested assets and increased income from fixed income exchange traded funds. Total investments stood at US$36.2 billion at June 30.
Fee income of US$83 million included US$48.1 million from management fees and US$34.9 million from performance fees, both lower year on year. The decline in management fees reflected a one-off recapture of deferred fees in Q2 2025 that did not repeat.
Net income available to common shareholders was US$654.2 million, or US$15.48 per diluted share, against US$826.5 million, or US$17.20 per diluted share, in Q2 2025. The year-on-year decline reflected substantially lower investment gains. Operating income available to common shareholders was US$547.8 million, or US$12.92 per diluted share, up from US$12.29 in the prior-year quarter.
The annualised return on average common equity was 24%, against 33.7% in Q2 2025. The annualised operating return on average common equity was 20.1%.
Book value per common share grew 5.7% during the quarter to US$264.77. RenaissanceRe repurchased US$350 million of common shares in Q2 at an average price of US$300.82 per share. A further US$82.9 million of shares were bought back between July 1 and 20. Since beginning buybacks two years ago, the group has repurchased roughly 11.5 million shares for approximately US$3 billion, about 22% of its starting share count.
CEO Kevin J. O'Donnell said mid-year renewals allowed the group to retain lines at attractive terms and grow limit with high-quality clients. He said the group also bought additional retrocessional protection across both property and casualty and specialty. "This combination of disciplined execution, diversified earnings streams and consistent capital management positions us to continue compounding tangible book value per common share," O'Donnell said.
