RenaissanceRe Holdings Ltd (NYSE:RNR) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 11:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the RenaissanceRe Second Quarter 2020 Financial Results Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Keith McCue, Senior Vice President, Finance and Investor Relations. Thank you. Please go ahead, sir.
Keith Alfred McCue
Good morning. Thank you for joining our second quarter 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 (441) 239-4830, and we'll make sure to provide you with one. There will be an audio replay of the call available from about 2:00 p.m. Eastern Time today through midnight on August 27.
The replay can be accessed by dialing (855) 859-2056 U.S. toll-free or one (404) 537-3406 internationally. The passcode you will need for both numbers is 3449228. Today's call is also available through the Investor Information section of www.renre.com and will be archived on RenaissanceRe's website through midnight on August 27, 2020. 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 O'Donnell, President and Chief Executive Officer; and Bob Qutub, Executive Vice President and Chief Financial Officer.
I'd now like to turn the call over to Kevin. Kevin?
Thanks, Keith. Good morning, and thank you for joining today's call. I'm glad to report that we had strong performance both financially and operationally in the second quarter. For me, three accomplishments in particular stand out: First, we raised over $1 billion of new common equity, building a fortress balance sheet in anticipation of significant future opportunities. Second, our three category approach to managing our COVID-19 exposure proved sound with reported claims developing in line with expectations.
Finally, we executed disciplined and focused renewals across property and casualty, working constructively with our customers and brokers to achieve rate adequacy and improve terms and conditions. I will address each of these accomplishments in greater detail and discuss the quarter more generally. As usual, Bob will also update you on our financial performance for the quarter.
Beginning with our capital raise. Throughout our 27-year history, we have placed a high bar to raising common equity. Post-IPO, we have only issued common shares on one other occasion not concurrent with an acquisition. To raising equity, I believe we need to answer at least three questions: Why now? Why equity? And why $1 billion?
First, why now? We are confident in our ability to execute into an improved market and believe the opportunity will persist for several years. Prior to the emergence of COVID-19, P&C markets were already experiencing constrained supply and elevated demand, resulting in upward pressure on rates. Numerous factors led to this supply-demand imbalance.
Property markets have experienced three consecutive years of elevated catastrophe activity, resulting in