RenaissanceRe Holdings Ltd. (NYSE:RNR.PRE) Q1 2016 Earnings Conference Call - Final Transcript

Apr 27, 2016 • 10:00 am ET


RenaissanceRe Holdings Ltd. (NYSE:RNR.PRE) Q1 2016 Earnings Conference Call - Final Transcript


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Good morning. My name is Jonathan, and I will be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe First Quarter 2016 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions].

Thank you. Mr. Peter Hill, you may begin your conference.

Peter Hill

Good morning, and thank you for joining this first quarter 2016 financial results conference call. Yesterday, after the market closed, we issued our quarterly release. If you didn't receive a copy, please call me, at 212-521-4800, and we'll make sure to provide you with one. There will be an audio replay of the call available from about 1 PM Eastern Time today through midnight on May 27th. The replay can be accessed by dialing 855-859-2056 US Toll Free or +1-404-537-3406 internationally. The pass code you will need for both numbers is 84474528.

Today's call is also available through the Investor Information section of and will be archived on RenaissanceRe's website through midnight on July 6th. Before we begin, I'm obliged to caution that today's discussion may contain forward-looking statements, and actual results may differ materially from those discussed. Additional information regarding the factors shaping these outcomes can be found in RenaissanceRe's SEC filings, to which we direct you.

With us to discuss today's results are Kevin ODonnell, President and Chief Executive Officer; and Jeff Kelly, Executive Vice President and Chief Financial Officer.

I'd now like to turn the call over to Kevin. Kevin?

Kevin O' Donnell

Thanks, Peter, and good morning, everyone. I'll open the call with a brief overview, then I'll turn the call over to Jeff to go over the financial results, then I'll come back on and speak in more detail about our business in the market. Last night, we released our first quarter earnings, where we reported an ROE of 11.8% and an operating ROE of 6.1%. We had positive results in our catastrophe segment, which benefited from low loss activity and our Lloyd segment, which had especially a strong quarter.

Our investments portfolios also preformed relatively well, and while our casualty and specialty business experienced some unusually large loss activity resulting in a breakeven quarter, they delivered strong growth and otherwise performed within expectations. As discussed on the last call, the market remains difficult and we continue to see reductions to rates. While we cannot change this environment, we can define our strategy and executed well and I promise that we will continue to exercise the same levels of discipline as we have in the past.

This disciplined approach to capital and risk management is why we continue to be the preferred partner for a wide range of companies on both sides of the risk transfer equation. As others are becoming more risk tolerant, we are becoming less so. For example, we shrink the size of our property cat book by eliminating underpriced business. In addition, we managed our risk profile