NEW YORK (AP) — Reinsurance company RenaissanceRe Holdings Ltd. on Tuesday posted a 76 percent drop in third-quarter profit, mainly due to big investment losses during the worst quarter for the markets since the economic crisis.
Pembroke, Bermuda-based RenaissanceRe said net income attributable to common shareholders fell to $49.3 million, or 95 cents per share, for the three months ended Sept. 30. That compared with $204.8 million, or $3.70 per share, in the year-ago period.
A 6 percent decrease in the number of outstanding shares pushed earnings per share up in the recent quarter.
Total revenue fell 43 percent to $217.9 million, from $382 million last year.
Analysts, on average, were expecting profit of 88 cents per share, on total revenue of $278.3 million, according to data provided by FactSet.
Insured catastrophe losses during the quarter were modest despite a season with a large number of tropical storms, said CEO Neill Currie. "On the other hand, there was notable volatility in the capital markets which adversely impacted our investment results."
The company booked net investment losses of $27.9 million, versus net investment gains of $59.6 million last year.
Net premiums written — the amount of premiums collected minus commissions and reinsurance costs — rose 25 percent to $103 million. Net claims and related expenses edged down a fraction to $77.8 million.
RenaissanceRe said its combined ratio was 63.7 percent, compared with 66.4 percent last year. Combined ratio is the sum of an insurance company's loss ratio and expense ratio and is used as an indicator of profitability. A ratio above 100 means that for every premium dollar taken in, more than a dollar went for losses, expenses, and commissions. A figure below 100 indicates an underwriting profit.
RenaissanceRe shares closed Tuesday trading down $1.63, or 2.4 percent, at $66.50 as the market dropped sharply. Shares were not trading afterhours following the release of the quarterly results..
