Bermuda reinsurer RenaissanceRe Holdings RNR reported OK first quarter 2009 earnings April 29, on first impression. At the top line, RenRe's gross written premium rose 13%, roughly in line with market rate increases. But a spike in unearned premiums led to a modest decline in revenue, and we are looking forward to learning more about that on the conference call April 30.
The erosion in values, it is noted, was comparatively smaller relative to last quarter and was somewhat offset by rising market values for treasury and government securities. Mr. Dwelle is continuing to recommend investors stick with well established names that are leveraged to improving pricing prospects and the flight to quality trend, including Chubb, PartnerRe, RenaissanceRe and W.R. Berkley. NU Online News Service, April 15, 12:51 p.m. EDT An investment bank analysis of the property casualty market finds that the outlook for this year is improving modestly but declines can be expected in earnings per share. A report by Mark Dwelle, an analyst with RBC Capital Markets, said that with the exception of a few companies a deterioration of the p c sector is anticipated. RBC in a statement said the lessening in performance mainly reflects lower underwriting margins and reduced investment income.
Standard & Poor's Ratings Services has assigned its 'AA-' counterparty credit and financial strength ratings on Renaissance Reinsurance of Europe (RenRe Europe) with a stable outlook. "RenRe Europe, an Ireland-based company, is a subsidiary of Renaissance Reinsurance Ltd (RenRe; AA-/Stable/--), of which the ultimate parent is RenaissanceRe Holdings Ltd (NYSE:RNR; A/Stable/--)," said S&P. "RenRe Europe primarily underwrites property catastrophe and specialty reinsurance coverage for re/insurers in Europe, reflecting an aligned strategy with its parent company." . Credit analyst Taoufik Gharib added: "We view RenRe Europe as core to RenRe, solely based on the strong explicit support in place. Therefore, the ratings on RenRe Europe depend entirely on this contractual support rather than on the intrinsic characteristics of the Irish subsidiary." This explicit support includes: .
RESEARCH Ratings Definitions Bulletin: RenaissanceRe Holdings Ltd. And Subsidiaries Ratings Unaffected By Several Management Changes Publication date: 11-Jan-2010 Primary Credit Analyst: Taoufik Gharib, New York (1) 212-438-7253;
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