Profile: Renaissancere Holdings Ltd (RNR_pc.N)
14 Mar 2014
RenaissanceRe Holdings Ltd. (RenaissanceRe), incorporated on June 7, 1993, is a global provider of reinsurance and insurance coverages and related services. The Company’s segments include Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain property catastrophe and specialty joint ventures and Lloyd's, which includes reinsurance and insurance business written through Syndicate 1458.
In addition, the Company’s Other category primarily reflects its strategic investments; weather and energy risk management operations; investments unit; corporate expenses, capital servicing costs and noncontrolling interests; results of its discontinued operations. The Company’s products include property catastrophe reinsurance, which it primarily writes through its principal operating subsidiary Renaissance Reinsurance, Syndicate 1458, and joint ventures, principally DaVinci and Top Layer Re.
The Company’s Reinsurance segment has two main units and is managed by its President and Global Chief Underwriting Officer. Property catastrophe reinsurance, principally written for its own account, and for DaVinci, is its traditional core busines. This coverage protects against natural catastrophes, such as earthquakes, hurricanes and tsunamis, as well as claims arising from other natural and man-made catastrophes, such as winter storms, freezes, floods, fires, wind storms, tornadoes, explosions and acts of terrorism. The Company offers this coverage to insurance companies and other reinsurers primarily on an excess of loss basis.
Specialty reinsurance principally written for its own account and for DaVinci, covering certain targeted classes of business. Its portfolio includes various classes of business, such as catastrophe exposed workers' compensation, surety, terrorism, energy, aviation, crop, political risk, trade credit, financial, mortgage guarantee, catastrophe-exposed personal lines property, casualty clash, certain other casualty lines and other specialty lines of reinsurance that it collectively refers to as specialty reinsurance.
The Company principally writes catastrophe reinsurance on an excess of loss basis, which means it provides coverage to its insureds when aggregate claims and claim expenses from a single occurrence of a covered peril exceed the attachment point specified in a particular contract. Under these contracts, its indemnify an insurer for all or a specified portion of the losses on underlying insurance policies in excess of a specified amount, and up to an amount per loss specified in the contract. The coverage provided under excess of loss reinsurance contracts may be on a worldwide basis or limited in scope to selected geographic areas. Coverage can also vary from all property perils to limited coverage on selected perils, such as earthquake only coverage.
The Company also invests in insurance-linked securities. Insurance-linked securities are generally privately placed fixed income securities as to which all or a portion of the repayment of the principal is linked to catastrophic events. It writes a range of lines of reinsurance other than property catastrophe, such as catastrophe exposed workers' compensation, surety, terrorism, energy, aviation, crop, political risk, trade credit, financial, mortgage guarantee, catastrophe-exposed personal lines property, casualty clash, certain other casualty lines and other specialty lines of reinsurance that it collectively refers to as specialty reinsurance. The Company offers its specialty reinsurance products principally on an excess of loss basis, as described above with respect to its catastrophe reinsurance products, and also provide some proportional coverage.
The Company manages property catastrophe-oriented joint ventures. Its principal joint ventures include Top Layer Re and DaVinci. Renaissance Underwriting Managers, Ltd. (RUM), a wholly owned subsidiary of the Company, acts as the exclusive underwriting manager for each of these joint ventures. The Company provides weather and energy related risk management solutions and financial products through Renaissance Trading Ltd. (Renaissance Trading) and RenRe Energy Advisors Ltd. (REAL) and sell financial products to address weather risks, and engage in certain weather, energy and commodity derivatives trading activities. Subsidiaries of Tower Hill Insurance Group, LLC. (THIG), namely Tower Hill Claims Services, LLC, and Tower Hill Claims Management, LLC provide claim adjustment services through exclusive agreements with THIG. Tower Hill Holdings, Inc. (Tower Hill) is an insurance holding company. The subsidiaries of Tower Hill, along with Tower Hill Signature, write residential property insurance.
The Company’s Lloyd's segment includes insurance and reinsurance business written for its own account through Syndicate 1458. It offers a range of property and casualty insurance and reinsurance products including, but not limited to, direct and facultative property, property catastrophe, agriculture, medical malpractice, general liability, professional indemnity, political risk and trade credit. As with its catastrophe and specialty reinsurance business, it provides coverage for relatively limits or exposures, and thus it is subjected to potential claims volatility.
The Company’s Other category primarily includes the results of the Company’s share of strategic investments in certain markets; its weather and energy risk management operations primarily through Renaissance Trading and REAL; its investment unit which manages and invests the funds generated by its consolidated operations; corporate expenses, capital services costs and noncontrolling interests; the results of the Company's discontinued operations, and the remnants of its Bermuda-based insurance operations.
Renaissancere Holdings Ltd
Renaissance House, 12 Crow Lane
PEMBROKE HM 19