Renaissancere Holdings Ltd. · NYSE:RNR
Renaissancere — Investor Presentation (September 2007)
29 slides from Renaissancere's investor presentation, Sep 18, 2007
Slide 1: RenaissanceRe Holdings Ltd. Investor Presentation
RenaissanceRe Holdings Ltd. Investor Presentation September 2007
Slide 2: Table of Contents
Table of Contents Consistent Strategy Identifying Opportunities Leveraging Our Franchise Recent Developments Well-Positioned for the Future
Slide 3: Our focus and strategy remain the same
Our focus and strategy remain the same We focus on four key business areas Property Cat Reinsurance Specialty Reinsurance Individual Risk Joint Ventures and Strategic Investments Four core strategies are key to our success Superior risk selection – underwriting discipline, proprietary tools, risk ma
Slide 4: Key Competitive Advantages
Key Competitive Advantages Discipline - Disciplined underwriter with proven track record in hard and soft markets; history of identifying market inefficiencies Talent & Culture - Experienced management team; risk management culture; shared strategic vision Use Of Technology – Proprietary models to a
Slide 5: Discipline requires knowing when to grow and when to shrink
Discipline requires knowing when to grow and when to shrink Market conditions dictate writings – we decrease when conditions soften (e.g. late 90’s), and grow when pricing improves (e.g. 2002) Specialty declined in 2006 as we stayed disciplined in a more competitive market, but there were attractive
Slide 6: Our team is strong and key to our success
Our team is strong and key to our success Neill A. Currie Chief Executive Officer Kevin J. O'Donnell William I. Riker (1) William J. Ashley John D. Nichols Fred R. Donner Stephen H. Weinstein President President CEO EVP, President Chief Financial Officer General Counsel, SVP Renaissance Reinsurance
Slide 7: We are differentiated in the resources we dedicate to risk modeling
We are differentiated in the resources we dedicate to risk modeling Reinsurance (11) 6 Modelers 1 Actuary 2 Masters Risk Systems (5) 1 Masters Individual Risk (6) 4 Programmers 3 Masters Risk Modeling Resources WPC Consulting (14) Quant. Group (4) 12 Ph.D’s 1 Ph.D 1 Masters RIM (5) Corporate Risk (3
Slide 8: Risk management is more than modeling
Risk management is more than modeling – management expertise and corporate culture are critical Superior Risk Management REMS© Management Avoid Computer Procedures Surprises System and Culture Clean database Highly talented User friendly individuals system Underwriters Multiple vendor understand mod
Slide 9: To manage capital we cultivate diversified and flexible sources
To manage capital we cultivate diversified and flexible sources Multiple channels of access for capital is a competitive advantage Public Equity Retrocessional reinsurance capacity can be used to manage capital needs Public when available at economic terms Reinsurance Debt Bank debt can be used to m
Slide 10: Our goal remains long-term growth in tangible book value per share plus accumulated dividends
Our goal remains long-term growth in tangible book value per share plus accumulated dividends Tangible book value per share plus accumulated dividends has grown at an annualized rate of 17.5% from 1997 through 2006 – driven by a track record of strong Operating ROE While the 2004 and 2005 results we
Slide 11: We are also well-positioned to address the new sources of capital that are entering
We are also well-positioned to address the new sources of capital that are entering our business Hedge funds, investment banks and securitization have increasingly become sources of risk-bearing capacity for property catastrophe risks we believe further growth is inevitable These participants will c
Slide 12: Table of Contents
Table of Contents Consistent Strategy Identifying Opportunities Leveraging Our Franchise Recent Developments Well-Positioned for the Future
Slide 13: While our strategy will remain consistent, our business focus will evolve
While our strategy will remain consistent, our business focus will evolve We operate today with the same culture and principles as when the company was formed By staying disciplined and focused we have been able to leverage our approach to build a more diversified business model We will continue to
Slide 14: We screen new opportunities with a consistent framework
We screen new opportunities with a consistent framework We look for new business opportunities that meet our return hurdles and fit our business model. Market Credible Data/ Opportunity Decision Support Tools Cultural Fit 14
Slide 15: We've used this approach to grow from a Cat company to four successful business units
We’ve used this approach to grow from a Cat company to four successful business units Gross written managed premium 2,500 RenRe Cat RenRe Specialty 2,000 Joint Venture Individual Risk 1,500 1,000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Proj. Projected as of Q2 * Information conc
Slide 16: Table of Contents
Table of Contents Consistent Strategy Identifying Opportunities Leveraging Our Franchise Recent Developments Well-Positioned for the Future
Slide 17: We are leveraging off of our market leading franchise in Property Cat
We are leveraging off of our market leading franchise in Property Cat RNR delivers value RNR gets preferred status Consistent pricing Normal “open market” position Quick response Plus preferred signings on open market transactions Customized products Plus private market transactions Capacity for lar
Slide 18: Since 2001, we've built a more diversified Specialty Re portfolio
Since 2001, we’ve built a more diversified Specialty Re portfolio while remaining disciplined in 2006’s softening market 2001 Specialty Premium 2005 Specialty Premium 2006 Specialty Premium $77 million $427 million $222 million 18.7% 4% 12% 22% 32.7% 26.3% 33.1% 23% 19% 21% 40.6% 6.7% 18% 11.1% 11.8
Slide 19: Individual Risk has grown significantly
Individual Risk has grown significantly Individual Risk Gross Written Premium by Major Type of Business Commercial Property $800 Personal Lines Property $700 Commercial Multi -Lines $600 $500 $400 $300 $200 $100 $0 2004 2005 2006 19
Slide 20: Individual Risk is selectively focused with a small group of partners
Individual Risk is selectively focused with a small group of partners Our Individual Risk Unit is focused on high-margin primary insurance and quota share reinsurance where we evaluate the “Individual Risk” (i.e. underwriting policies as distinguished from portfolios) We partner with other insurance
Slide 21: Ventures has developed three areas of competence
Ventures has developed three areas of competence 1) Property Cat Joint Ventures 2) Strategic Investments 3) Customized Reinsurance Leveraging RenRe’s Strategic investments to Custom packaging capabilities and reputation capitalize upon market and selling of risk as the leading Property Cat dislocati
Slide 22: The period following the 2004 and 2005 storms highlighted the importance of Ventures' role
The period following the 2004 and 2005 storms highlighted the importance of Ventures’ role within RenaissanceRe In 2006 and 2007 we executed four significant capital raises to bring capacity to our clients Our joint venture track record since 1999 demonstrates RenaissanceRe’s ability to add value =
Slide 23: Table of Contents
Table of Contents Consistent Strategy Identifying Opportunities Leveraging Our Franchise Recent Developments Well-Positioned for the Future
Slide 24: Recent developments
Recent developments July U.K. floods- Industry loss estimate *£1 billion-*£1.5 billion. Our preliminary loss estimate is not expected to be material. Hurricane Dean- Industry loss estimate *$750 million-*$1.5 billion. Our preliminary loss estimate is not expected to be material. Hurricane Felix- Ind
Slide 25: Table of Contents
Table of Contents Consistent Strategy Identifying Opportunities Leveraging Our Franchise Recent Developments Well-Positioned for the Future
Slide 26: Our balance sheet and capital base are strong
Our balance sheet and capital base are strong * excluding $3.9 billion of capacity at Top Layer Re **Reflects the redemption of ~$250 million of preference shares and funded debt, which were redeemed during Q1 2007. 26
Slide 27: RenaissanceRe is well-positioned
RenaissanceRe is well-positioned Our balance sheet and capital base are strong - our capital position is stronger than at any point in our history Our culture and talented team remain a key competitive advantage We have strengthened our position over the last year as the market leader in property ca
Slide 28: Safe Harbour Statement
Safe Harbour Statement Cautionary Statement under "Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this presentation contain information about the Company's future business prospects. These statements may be considered "forward-looking." These stat
Slide 29: RenaissanceRe Holdings Ltd.
RenaissanceRe Holdings Ltd. Renaissance House 8 – 20 East Broadway Pembroke, HM 19 Bermuda Tel: (441) 295-4513 www.renre.com
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