RenaissanceRe (RNR) Q4 2025 earnings summary

Executive summary

• Annual net income available to common shareholders reached $2.6 billion, with operating income at $1.9 billion for 2025, despite $786 million to $1.41 billion in net negative impact from large events, including California wildfires and Hurricane Melissa.

• Book value per common share grew 26.2% year-over-year, and tangible book value per share plus accumulated dividends rose 30.8%.

• Return on average common equity was 25.9% for the year and 27.8% annualized in Q4; operating ROE reached 18% for the year and 22% in Q4.

• Over the last three years, tangible book value per share has more than doubled, driven by strong retained earnings and disciplined capital management.

• Successfully integrated the Validus acquisition, optimized operations, and upgraded underwriting systems to enhance efficiency and AI integration.

Financial highlights

• Gross premiums written for 2025 were $11.7 billion, flat year-over-year; net premiums written were $9.9 billion.

• Combined ratio for 2025 was 87.2%, adjusted combined ratio 85.4%, both impacted by 15.3 points from large loss events.

• Fourth quarter operating earnings per share were $13.34, with an operating ROE of 22%.

• Fee income for 2025 was $329 million, with management fees at $207 million and performance fees at $121 million.

• Total investment result for 2025 was $3.0 billion, up 77% year-over-year, including $1.2 billion in mark-to-market gains, notably $400 million from gold investments.

Outlook and guidance

• Management expects continued long-term value creation in 2026 through strong underwriting, fee, and investment income, and robust capital management.

• Property Cat premiums expected to be down mid-single digits in 2026, with rate adequacy remaining strong.

• Operating expense ratio projected to average 5%-5.5% in 2026, after accounting for Bermuda tax credits.

• Management fees expected to be around $50 million and performance fees around $30 million in Q1 2026.

• Other Property net premiums earned expected at $360 million and attritional loss ratio in the mid-50s for Q1 2026.