RenaissanceRe Holdings Ltd. · NYSE:RNR
RenaissanceRe — Investor Presentation (February 2021)
11 slides from RenaissanceRe's investor presentation, February 2021
Slide 1: What Can We Do? Policy Responses to Wildfire Risk
What Can We Do? Policy Responses to Wildfire Risk
Slide 2: R Street differs from other groups
Founded in June 2012 R Street differs from other groups ❑ Nonprofit, nonpartisan, public policy in our dedication to building broad research organization coalitions and working with a wide ❑ Believe free markets work better than the alternatives array of groups who share specific ❑ Also recognize th
Slide 3: Impact on Calif. homeowners insurance market
Impact on Calif. homeowners insurance market ❑ Loss Ratio (2007-2016) High: 71.7 (2007) Low: 34.7 (2009) Avg: 49.7 ❑ Loss Ratio 2017: 201.3 ❑ Loss Ratio 2018: 176.1 3
Slide 4: California FAIR Plan, 2014 to 2018
California FAIR Plan, 2014 to 2018 ❑ Market Share up 13% from 0.69% to 0.78% ❑ Exposure up 15% from $44B to $50.3B ❑ Total Policies down 4% from 129k to 124k ❑ Commercial Policies down 21% from 5k to 4k 4
Slide 5: Florida Citizens, 2014 to 2018
Florida Citizens, 2014 to 2018 ❑ Market Share down 51% from 8.5% to 4.2% ❑ Exposure down 46% from $202B to $109B ❑ Total Policies down 53% from 982k to 460k ❑ Since 2008, exposure down 74% and policies down 67% 5
Slide 6: Prop 103 (1988)
Prop 103 (1988) ❑ Limits the ability of insurance markets to adjust. ❑ Disallows consideration of reinsurance costs. ❑ Limits use of cat models. ❑ Legislature constrained to proposals that forward the purpose of Prop 103. 6
Slide 7: Recent California legislation
Recent California legislation ❑ AB 1054, signed by Gov. Newsom, creates $21B Wildfire Fund for utilities. ❑ AB 740, did not pass, exempts fire-only insurers in high-risk zones from FAIR Plan. ❑ Commissioner Lara doubled FAIR Plan's policy limits from $1.5M to $3M. 7
Slide 8: What California should do
What California should do ❑ Loosen Prop 103 implementation, especially around cat models. ❑ Reform zoning to allow much more building in fire-safe zones. ❑ Expand grants for mitigation or, in the extreme, relocation. 8
Slide 9: What California should not do
What California should not do ❑ Orders against nonrenewals. ❑ Unfairly cap rates. ❑ Create a Fla Cat Fund style reinsurer. 9
Slide 10: Ideas worth exploring
Ideas worth exploring ❑ Microgrids ❑ Community risk transfer ❑ Parametrics and InsurTech ❑ Environmental intervenors ❑ Resilience bonds 10
Slide 11: THANKS!
THANKS! Any questions? You can find me at: ❑ @raylehmann on Twitter ❑ rlehmann@rstreet.org 11
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