# RENAISSANCERE HOLDINGS LTD (RNR) FY 2024 MD&A

Verbatim Item 7 Management's Discussion and Analysis from RENAISSANCERE HOLDINGS LTD's 10-K for fiscal year 2024.

SEC filing source: https://www.sec.gov/Archives/edgar/data/913144/000091314425000009/rnr-20241231.htm
Accession: 0000913144-25-000009
Filing date: 2025-02-12
Report date: 2024-12-31
Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high

Company profile: /company/RNR/
All MD&A years: /company/RNR/mda/
Previous year: /company/RNR/mda/fy2023/ (FY 2023)
Next year: /company/RNR/mda/fy2025/ (FY 2025)

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of our results of operations for 2024 compared to 2023, as well as our liquidity and capital resources at December 31, 2024. This discussion and analysis should be read in conjunction with the audited consolidated financial statements and notes thereto included in this filing. This filing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results described or implied by these forward-looking statements. See “Note on Forward-Looking Statements.” For a discussion and analysis of our results of operations for 2023 compared to 2022, please refer to the disclosures set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 51-102 of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024.

On November 1, 2023, we completed the Validus Acquisition, pursuant to which we acquired Validus Holdings and Validus Specialty. We accounted for the Validus Acquisition under the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations.

Our results of operations and financial condition include Validus since November 1, 2023. The following discussion and analysis of our results of operations for 2024, compared to 2023, should be read in that context.

In this Form 10-K, references to “RenaissanceRe” refer to RenaissanceRe Holdings Ltd. (the parent company) and references to “we,” “us,” “our” and the “Company” refer to RenaissanceRe Holdings Ltd. together with its subsidiaries, unless the context requires otherwise. Defined terms used throughout this Form 10-K are included in the “Glossary of Defined Terms” at the end of “Part I, Item 1. Business” of this Form 10-K.

All dollar amounts referred to in this Form 10-K are in U.S. dollars unless otherwise indicated.

Due to rounding, numbers presented in the tables included in this Form 10-K may not add up precisely to the totals provided.

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INDEX TO MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","Page"],["OVERVIEW","53"],["SELECTED CONSOLIDATED FINANCIAL DATA","56"],["SUMMARY OF CRITICAL ACCOUNTING ESTIMATES","57"],["Claims and Claim Expense Reserves","57"],["Premiums and Related Expenses","63"],["Reinsurance Recoverable","64"],["Fair Value Measurements and Impairments","65"],["Income Taxes","67"],["SUMMARY RESULTS OF OPERATIONS","69"],["FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES","82"],["Financial Condition","82"],["Liquidity and Cash Flows","83"],["Capital Resources","88"],["Reserve for Claims and Claim Expenses","89"],["Investments","90"],["Ratings","93"],["SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION","95"],["CURRENT OUTLOOK","96"]]
[[/GREPCENT_TABLE]]

52

OVERVIEW

RenaissanceRe is a global provider of reinsurance and insurance. We provide property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, we have offices in Bermuda, Australia, Canada, Ireland, Singapore, Switzerland, the U.K., and the U.S.

Our mission is to match desirable risk with efficient capital, and our vision is to be the best underwriter. We believe that this will allow us to produce superior returns for our shareholders over the long term, and enable our purpose to protect communities and enable prosperity. We seek to accomplish these goals by delivering a value proposition composed of leadership, expertise and partnership, through our operation as an integrated system of three competitive advantages: superior risk selection, superior customer relationships and superior capital management.

Our current business strategy focuses predominantly on writing reinsurance. We apply our reinsurance lens of approaching risks as a portfolio to the insurance business that we write, primarily though delegated authority arrangements. Through our Capital Partners unit we create and manage innovative joint ventures and managed funds which provide access to the portfolios our underwriters build. Additionally, we pursue several other opportunities, such as executing customized reinsurance transactions to assume or cede risk, and managing certain strategic investments. We continually explore appropriate and efficient ways to address the risk management needs of our clients and the impact of various regulatory and legislative changes on our operations. From time to time, we consider diversification into new ventures, either through organic growth, the formation of new joint ventures or managed funds, or the acquisition of, or investment in, other companies or books of business of other companies.

Our business consists of the following reportable segments: (1) Property, which is comprised of catastrophe and other property (re)insurance, and (2) Casualty and Specialty, which is comprised of general casualty, professional liability, credit and other specialty (re)insurance. The underwriting results of our consolidated operating subsidiaries and underwriting platforms are included in our Property and Casualty and Specialty segment results as appropriate.

We have three principal drivers of profit that generate diversified earnings streams for our business: underwriting income, fee income, and investment income. Underwriting income is the income that we earn from our core underwriting business. By matching desirable risk with efficient capital and accepting the volatility that this business brings, we believe that we can generate superior returns over the long-term. Fee income is the income that we earn primarily from managing third-party capital in our Capital Partners unit and is composed of management fee income and performance fee income. Investment income is income derived from the investment portfolio that we maintain to support our business. We take a disciplined approach in building a relatively conservative, well-structured investment portfolio, with a focus on fixed income investments. Compared to underwriting income, we view fee income, especially management fee income, and investment income, as being relatively less volatile and as diversifying sources of income.

We principally measure our financial success through long-term growth in tangible book value per common share plus the change in accumulated dividends. We believe this metric is the most appropriate measure of our financial performance, and in respect of which we believe we have delivered superior performance over time.

Validus Acquisition

On November 1, 2023, we completed the Validus Acquisition in accordance with the Stock Purchase Agreement dated May 22, 2023 between RenaissanceRe Holdings Ltd. and American International Group, Inc., a Delaware corporation and NYSE-listed company, pursuant to which, upon the terms and subject to the conditions thereof, we, or one of our subsidiaries, purchased, acquired and accepted from certain subsidiaries of AIG, all of their right, title and interest in the shares of Validus Holdings, Ltd. and Validus Specialty, LLC. Substantially all of the assets of Validus Holdings are comprised of its equity interest in its wholly-owned subsidiary, Validus Reinsurance, Ltd. Pursuant to the Stock Purchase Agreement, we also acquired the renewal rights, records and customer relationships of the assumed treaty reinsurance business of Talbot Underwriting Limited, an affiliate of AIG, a specialty (re)insurance group operating within the Lloyd’s market.

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In connection with the Validus Acquisition, on November 1, 2023, we paid to AIG aggregate consideration of $2.985 billion, consisting of the following: (i) cash consideration of $2.735 billion; and (ii) 1,322,541 common shares, which were valued at approximately $250.0 million based on a value of $189.03 per share at signing, pursuant to the Stock Purchase Agreement. The value of the acquisition consideration was $3.020 billion as of the closing date. We also entered into a registration rights agreement with AIG in respect of the shares issued to AIG. AIG also received an option to make a substantial investment into our Capital Partners vehicles, which was exercised effective January 1, 2024.

We believe that the Validus Acquisition has several significant strategic benefits for us. We believe that it advances our strategy as a global property and casualty reinsurer, providing additional scale and increasing our importance with customers and brokers. Through the Validus Acquisition, we gained access to a large, attractive book of reinsurance business that was closely aligned with our existing business mix, accelerating our growth in a favorable market. We believe our increased scale following the Validus Acquisition positions us among the five largest global property and casualty reinsurers. The Validus Acquisition was immediately accretive to our shareholders upon completion. At the same time, we have deepened, and intend to continue to deepen, our relationship with a core trading partner, AIG, who is one of our five largest clients by premium volume, as the Validus Acquisition provides options for increased future strategic engagement.

Revenues and Expenses

Our revenues are principally derived from three sources: (1) net premiums earned from the reinsurance and insurance policies we sell; (2) net investment income and net realized and unrealized gains from the investment of our capital funds and the investment of the cash we receive on the policies which we sell; and (3) fees received from our joint ventures, managed funds and structured reinsurance products, which are primarily reflected in redeemable noncontrolling interest or as an offset to acquisition or operational expenses.

Our expenses primarily consist of: (1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; (2) acquisition costs, which typically represent a percentage of the premiums we write; (3) operational expenses, which primarily consist of personnel expenses, rent and other expenses; (4) corporate expenses, which include certain executive, legal and consulting expenses, costs for research and development, transaction and integration-related expenses, and other miscellaneous costs, including those associated with operating as a publicly traded company; and (5) interest and dividends related to our debt, preference shares and common shares. We are also subject to taxes in certain jurisdictions in which we operate. Historically, the majority of our income has been earned in Bermuda, which has not had a corporate income tax, so the tax impact to our operations has been minimal. However, on December 27, 2023, the Government of Bermuda announced the implementation of a 15% corporate income tax effective January 1, 2025. As a result, we expect our profits generated on or after January 1, 2025 in Bermuda, except for profits earned by our joint ventures and managed funds, will be subject to the 15% corporate income tax. Furthermore, we generally expect that the profits generated in Bermuda on or after January 1, 2025 by our joint ventures and managed funds, except to the extent those profits are attributable to redeemable noncontrolling interests, will also be taxed at 15% as a result of the enactment or expected enactment of provisions similar to the GloBE Rules by many of the jurisdictions in which we operate. We expect that these developments will increase our income taxes in the future. We believe that the flexible global operating model that we have utilized will continue to prove resilient.

The underwriting results of an insurance or reinsurance company are discussed frequently by reference to its net claims and claim expense ratio, underwriting expense ratio, and combined ratio. The net claims and claim expense ratio is calculated by dividing net claims and claim expenses incurred by net premiums earned. The underwriting expense ratio is calculated by dividing underwriting expenses (acquisition expenses and operational expenses) by net premiums earned. The combined ratio is the sum of the net claims and claim expense ratio and the underwriting expense ratio. A combined ratio below 100% indicates profitable underwriting prior to the consideration of investment income. A combined ratio over 100% indicates unprofitable underwriting prior to the consideration of investment income. We also discuss our net claims and claim expense ratio on a current accident year basis and a prior accident years basis. The current accident year net claims and claim expense ratio is calculated by taking current accident year net claims and claim expenses incurred, divided by net premiums earned. The prior accident years net claims and claim expense ratio is calculated by taking prior accident years net claims and claim expenses incurred, divided by net premiums earned.

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We manage DaVinci, Fontana, Medici, and Vermeer, and own all, or a majority, of the voting interests, but own no, or a minority, economic interest of each. As a result of our controlling voting interests, we fully consolidate these entities in our financial statements, even though we do not retain the full value of the economic outcomes generated by these entities. The portions of the economic outcomes that are not retained by us are ultimately allocated to the third-party investors who hold the noncontrolling interests in these entities. The economic outcomes may include underwriting results, investments results, and foreign exchange impacts, among other items. For example, if one of these entities were to generate underwriting losses due to a natural catastrophe, the full amount would be reflected in net income (loss) on our consolidated statements of operations, but ultimately we would only retain a portion of that amount in our net income (loss) attributable to RenaissanceRe. In our consolidated balance sheets and consolidated statements of operations, the portion of these items attributable to third parties is reflected in net (income) loss attributable to redeemable noncontrolling interests. Refer to “Note 10. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts our financial results.

Effects of Inflation

General economic inflation has increased over the past few years compared to recent historical norms, and there is a risk of inflation remaining elevated for an extended period, which could cause claims and claims related expenses to increase, impact the performance of our investment portfolio, or have other adverse effects. This risk may be exacerbated by geopolitical factors and global supply chain issues, among other factors, from time to time. Some central banks have begun to cut interest rates, which could act as a potential supporting force for some of these inflationary pressures, if they have cut rates too soon. The actual effects of the current and potential future increase in inflation on our results cannot be accurately known until, among other items, claims are ultimately settled. The duration and severity of an inflationary period cannot be estimated with precision. We consider the anticipated effects of inflation on us in our catastrophe loss models and on our investment portfolio. Our estimates of the potential effects of inflation are also considered in pricing and in estimating reserves for unpaid claims and claim expenses. The potential exists, after a catastrophe loss, for the development of inflationary pressures in a local economy.

55

SELECTED CONSOLIDATED FINANCIAL DATA

The following tables set forth our selected consolidated financial data and other financial information at the end of and for each of the years in the five-year period ended December 31, 2024. The results of Validus are included in our consolidated financial data from November 1, 2023. The selected consolidated financial data should be read in conjunction with our consolidated financial statements and related notes thereto and the other information in this “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-K.

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","2022","","2021","","2020"],["","(in thousands, except share and per share data and percentages)"],["","Statements of Operations Data:"],["","Gross premiums written","$","11,733,066","","","$","8,862,366","","","$","9,213,540","","","$","7,833,798","","","$","5,806,165"],["","Net premiums written","9,952,216","","","7,467,813","","","7,196,160","","","5,939,375","","","4,096,333"],["","Net premiums earned","10,095,760","","","7,471,133","","","6,333,989","","","5,194,181","","","3,952,462"],["","Net investment income","1,654,289","","","1,253,110","","","559,932","","","319,479","","","354,038"],["","Net realized and unrealized gains (losses) on investments","(27,840)","","","414,522","","","(1,800,485)","","","(218,134)","","","820,636"],["","Net claims and claim expenses incurred","5,332,981","","","3,573,509","","","4,338,840","","","3,876,087","","","2,924,609"],["","Acquisition expenses","2,643,867","","","1,875,034","","","1,568,606","","","1,214,858","","","897,677"],["","Operational expenses","496,588","","","375,182","","","276,691","","","212,184","","","206,687"],["","Underwriting income (loss)","1,622,324","","","1,647,408","","","149,852","","","(108,948)","","","(76,511)"],["","Net income (loss)","2,960,532","","","3,620,127","","","(1,159,816)","","","(103,440)","","","993,058"],["","Net income (loss) available (attributable) to RenaissanceRe common shareholders","1,834,985","","","2,525,757","","","(1,096,578)","","","(73,421)","","","731,482"],["","Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share \u2013 diluted","35.21","","","52.27","","","(25.50)","","","(1.57)","","","15.31"],["","Dividends per common share","1.56","","","1.52","","","1.48","","","1.44","","","1.40"],["","Weighted average common shares outstanding \u2013 diluted","51,339","","","47,607","","","43,040","","","47,171","","","47,178"],["","Return on average common equity","19.3","%","","40.5","%","","(22.0)","%","","(1.1)","%","","11.7","%"],["","Combined ratio","83.9","%","","77.9","%","","97.7","%","","102.1","%","","101.9","%"],["","At December 31,","2024","","2023","","2022","","2021","","2020"],["","Balance Sheet Data:"],["","Total investments","$","32,639,456","","","$","29,216,143","","","$","22,220,436","","","$","21,442,659","","","$","20,558,176"],["","Total assets","50,707,550","","","49,007,105","","","36,552,878","","","33,959,502","","","30,820,580"],["","Reserve for claims and claim expenses","21,303,491","","","20,486,869","","","15,892,573","","","13,294,630","","","10,381,138"],["","Unearned premiums","5,950,415","","","6,136,135","","","4,559,107","","","3,531,213","","","2,763,599"],["","Debt","1,886,689","","","1,958,655","","","1,170,442","","","1,168,353","","","1,136,265"],["","Capital leases","21,010","","","21,540","","","22,020","","","22,459","","","22,853"],["","Preference shares","750,000","","","750,000","","","750,000","","","750,000","","","525,000"],["","Total shareholders\u2019 equity attributable to RenaissanceRe","10,574,012","","","9,454,958","","","5,325,274","","","6,624,281","","","7,560,248"],["","Common shares outstanding","50,181","","","52,694","","","43,718","","","44,445","","","50,811"],["","Book value per common share","$","195.77","","","$","165.20","","","$","104.65","","","$","132.17","","","$","138.46"],["","Accumulated dividends","28.08","","","26.52","","","25.00","","","23.52","","","22.08"],["","Book value per common share plus accumulated dividends","$","223.85","","","$","191.72","","","$","129.65","","","$","155.69","","","$","160.54"],["","Change in book value per common share plus change in accumulated dividends","19.4","%","","59.3","%","","(19.7)","%","","(3.5)","%","","16.0","%"]]
[[/GREPCENT_TABLE]]

56

SUMMARY OF CRITICAL ACCOUNTING ESTIMATES

Claims and Claim Expense Reserves

We believe the most significant accounting judgment made by management is our estimate of claims and claim expense reserves. Claims and claim expense reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts we sell. Our reserve for claims and claim expense is a combination of case reserves, ACR, and incurred but not reported losses and incurred but not enough reported losses, collectively referred to as IBNR. Case reserves are losses reported to us by insureds and ceding companies, but which have not yet been paid. If deemed necessary and in certain situations, either we establish, or our clients report, ACR. Client reported ACR represents their estimate of additional contract specific claims in excess of the case reserves they have reported to us. ACR established by us represents our estimates for claims related to specific contracts which we believe may not be adequately estimated by the client as of that date or is not within the IBNR. We establish IBNR using actuarial techniques and expert judgment to represent the anticipated cost of claims which have not been reported to us yet or where we anticipate increased reporting. Our reserving committee, which includes members of our senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our audited consolidated financial statements.

The following table summarizes our reserve for claims and claim expenses by segment, allocated between case reserves, ACR and IBNR:

[[GREPCENT_TABLE]]
[["","At December 31, 2024","Case Reserves","","Additional Case Reserves","","IBNR","","Total"],["","(in thousands)"],["","Property","$","1,845,228","","","$","1,905,553","","","$","2,821,958","","","$","6,572,739"],["","Casualty and Specialty","3,081,081","","","295,074","","","11,354,597","","","14,730,752"],["","Total","$","4,926,309","","","$","2,200,627","","","$","14,176,555","","","$","21,303,491"],["","At December 31, 2023"],["","(in thousands)"],["","Property (1)","$","2,461,580","","","$","2,401,911","","","$","2,970,129","","","$","7,833,620"],["","Casualty and Specialty (1)","2,801,016","","","331,345","","","9,520,888","","","12,653,249"],["","Total (1)","$","5,262,596","","","$","2,733,256","","","$","12,491,017","","","$","20,486,869"]]
[[/GREPCENT_TABLE]]

(1)The previously reported amount has been adjusted to reclassify certain reserves from IBNR to ACR.

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Activity in the reserve for claims and claim expenses is summarized as follows:

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023"],["","(in thousands)"],["","Reserve for claims and claim expenses, net of reinsurance recoverable, beginning of period","$","15,142,583","","","$","11,181,648"],["","Net incurred related to:"],["","Current year","6,184,315","","","4,024,116"],["","Prior years","(851,334)","","","(450,607)"],["","Total net incurred","5,332,981","","","3,573,509"],["","Net paid related to:"],["","Current year","488,450","","","364,793"],["","Prior years","3,109,360","","","2,630,885"],["","Total net paid","3,597,810","","","2,995,678"],["","Foreign exchange and other (1)","(55,653)","","","62,902"],["","Amounts acquired (2)","\u2014","","","3,320,202"],["","Reserve for claims and claim expenses, net of reinsurance recoverable, end of period","16,822,101","","","15,142,583"],["","Reinsurance recoverable, end of period","4,481,390","","","5,344,286"],["","Reserve for claims and claim expenses, end of period","$","21,303,491","","","$","20,486,869"]]
[[/GREPCENT_TABLE]]

(1)Reflects the impact of the foreign exchange revaluation of the reserve for claims and claim expenses, net of reinsurance recoverable, denominated in non-U.S. dollars as at the balance sheet date, as well as reinsurance transactions accounted for under retroactive reinsurance accounting.

(2)Represents the fair value of Validus’ reserve for claims and claim expenses, net of reinsurance recoverable, acquired on November 1, 2023.

The following table details our prior year net development by segment of our liability for unpaid claims and claim expenses:

[[GREPCENT_TABLE]]
[["","","(Favorable) Adverse Development"],["","Year ended December 31,","2024","","2023"],["","(in thousands)"],["","Property","$","(818,852)","","","$","(408,905)"],["","Casualty and Specialty","(32,482)","","","(41,702)"],["","Total net favorable development of prior accident years net claims and claim expenses","$","(851,334)","","","$","(450,607)"]]
[[/GREPCENT_TABLE]]

Our reserving methodology for each line of business uses a loss reserving process that calculates a point estimate for our ultimate settlement and administration costs for claims and claim expenses. We do not calculate a range of estimates and do not discount any of our reserves for claims and claim expenses. We use this point estimate, along with paid claims and case reserves, to record our best estimate of ACR and IBNR in our consolidated financial statements. Under GAAP, we are not permitted to establish estimates for catastrophe claims and claim expense reserves until an event occurs that gives rise to a loss.

Reserving for our claims involves other uncertainties, such as the dependence on information from ceding companies, the time lag inherent in reporting information from the primary insurer to us or to our ceding companies, and different reserving practices among ceding companies. The information received from ceding companies is typically in the form of bordereaux, broker notifications of loss and/or discussions with ceding companies or their brokers. This information may be received on a monthly, quarterly or transactional basis and normally includes paid claims and estimates of case reserves. We may also receive an estimate or provision for IBNR from certain ceding companies. This information is often updated and adjusted from time to time during the loss settlement period as new data or facts in respect of initial claims, client accounts, industry or event trends may be reported or emerge in addition to changes in applicable statutory and case laws.

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Our estimates of large losses are based on factors including currently available information derived from claims information from certain customers and brokers, industry assessments of losses, proprietary models, historical reinsurance and insurance loss experience and statistics, management’s experience and judgment to assist the establishment of appropriate claims and claim expense reserves, and the terms and conditions of our contracts. The uncertainty of our estimates for large losses is also impacted by the preliminary nature of the information available, the magnitude and relative infrequency of the loss, the expected duration of the respective claims development period, inadequacies in the data provided to the relevant date by industry participants, the potential for further reporting lags or insufficiencies and, in certain cases, the form of the claims and legal issues under the relevant terms of insurance and reinsurance contracts. In addition, a significant portion of the net claims and claim expenses associated with certain large losses can be concentrated with a few large clients and therefore the loss estimates for these losses may vary significantly based on the claims experience of those clients. The contingent nature of business interruption and other exposures will also impact losses in a meaningful way, which we believe may give rise to significant complexity in respect of claims handling, claims adjustment and other coverage issues, over time. Given the magnitude of certain losses, there can be meaningful uncertainty regarding total covered losses for the insurance industry and, accordingly, several of the key assumptions underlying our loss estimates. Loss reserve estimation in respect of our retrocessional contracts poses further challenges compared to directly assumed reinsurance. In addition, our actual net losses may increase if our reinsurers or other obligors fail to meet their obligations.

Because of the inherent uncertainties discussed above, we have developed a reserving philosophy which attempts to incorporate prudent assumptions and estimates, and we have generally experienced favorable development on prior accident years net claims and claim expenses in the last several years. However, there is no assurance that this favorable development on prior accident years net claims and claim expenses will occur in future periods.

Our reserving techniques, assumptions and processes differ among our Property and Casualty and Specialty segments. Refer to “Note 8. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for more information on the risks we insure and reinsure, the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, prior year development of the reserve for claims and claim expenses, analysis of our incurred and paid claims development and claims duration information for each of our Property and Casualty and Specialty segments.

Property Segment

Actual Results vs. Initial Estimates

As discussed above, the key assumption in estimating reserves for our Property segment is our estimate of incurred claims and claim expenses. The table below shows our initial estimates of incurred claims and claim expenses for each accident year and how these initial estimates have developed over time. The initial estimate of accident year incurred claims and claim expenses represents our estimate of the ultimate settlement and administration costs for claims incurred in our Property segment occurring during a particular accident year, and as reported as of December 31 of that year. The re-estimated incurred claims and claim expenses as of December 31 of subsequent years, represent our revised estimates as reported as of those dates. Our most recent estimates as reported at December 31, 2024 differ from our initial accident year estimates and demonstrate that our most recent estimate of incurred claims and claim expenses are reasonably likely to vary from our initial estimate, perhaps significantly. Changes in this estimate will be recorded in the period in which they occur. In accident years where our current estimates are lower than our initial estimates, we have experienced favorable development, in comparison, for accident years where our current estimates are higher than our original estimates we have experienced adverse development. The table is presented on a net basis and, therefore, includes the benefit of reinsurance recoveries. In addition, we have included historical incurred claims and claim expenses development information related to Platinum, TMR and Validus in the table below. For incurred accident year claims and claim expenses denominated in currencies other than USD, we have used the current year-end balance sheet foreign exchange rate for all periods provided, thereby eliminating the effects of changes in foreign currency translation rates from the incurred accident year claims development information included in the table below.

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The following table details our Property segment incurred claims and claim expenses, net of reinsurance, as of December 31, 2024.

[[GREPCENT_TABLE]]
[["","","","Incurred Claims and Claim Expenses, Net of Reinsurance"],["","(in thousands)","","For the year ended December 31,"],["","Accident Year","","2015","","2016","","2017","","2018","","2019","","2020","","2021","","2022","","2023","","2024"],["","2015","","$","506,243","","","$","456,920","","","$","414,379","","","$","397,750","","","$","388,076","","","$","383,214","","","$","374,258","","","$","376,457","","","$","375,420","","","$","373,895"],["","2016","","\u2014","","","572,814","","","592,915","","","564,880","","","544,624","","","517,878","","","514,263","","","532,556","","","522,917","","","522,370"],["","2017","","\u2014","","","\u2014","","","1,951,429","","","1,813,187","","","1,687,873","","","1,670,648","","","1,613,614","","","1,550,274","","","1,521,356","","","1,496,890"],["","2018","","\u2014","","","\u2014","","","\u2014","","","1,271,912","","","1,348,628","","","1,286,032","","","1,158,452","","","1,147,450","","","1,098,897","","","1,072,994"],["","2019","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,162,088","","","1,135,337","","","1,042,748","","","976,162","","","914,252","","","912,496"],["","2020","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,966,826","","","2,075,320","","","2,076,315","","","2,010,634","","","1,972,883"],["","2021","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","2,759,175","","","2,758,871","","","2,655,570","","","2,440,274"],["","2022","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","2,544,022","","","2,431,989","","","2,045,341"],["","2023","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,469,539","","","1,376,749"],["","2024","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,928,913"],["","Total","","","","","","","","","","","","","","","","","","","","$","14,142,805"]]
[[/GREPCENT_TABLE]]

Our initial and subsequent estimates of incurred claims and claim expenses, net of reinsurance, are impacted by available information derived from claims information from customers and brokers, industry assessments of losses, proprietary models, historical reinsurance and insurance loss experience and statistics, management’s experience and judgment to assist the establishment of appropriate claims and claim expense reserves, and the terms and conditions of our contracts. As described above, given the complexity in reserving for claims and claims expenses associated with property losses, and catastrophe excess of loss reinsurance contracts in particular, which make up a significant proportion of our Property segment, we have experienced development, both favorable and unfavorable, in any given accident year. For example, net claims and claim expenses associated with the 2022 accident year have experienced favorable development. This is largely driven by reductions in estimated net ultimate claims and claim expenses associated with Hurricane Ian. In comparison, net claims and claim expenses associated with the 2020 accident year have experienced adverse development. The adverse development was driven by an increase in expected net claims and claim expenses as new and additional claims information was received associated with the 2020 Weather-Related Large Loss Events and COVID-19. The COVID-19 adverse development was driven by the legacy Validus portfolio prior to the Validus Acquisition and therefore did not impact our financial results.

In accident years with a low level of insured catastrophe losses, our other property lines of business contribute a greater proportion of our overall incurred claims and claim expenses within our Property segment, compared to years with a high level of insured catastrophe losses. We expect that certain of our other property lines of business will tend to generate less volatility in future calendar years and, as such, we would expect to see a slower more stable increase or decrease in estimated incurred net claims and claim expenses over time in such business. Certain of our other property contracts are also exposed to catastrophe events, resulting in increased volatility of incurred claims and claim expenses driven by the occurrence of catastrophe events. In addition, volatility in the initial estimate associated with large catastrophe losses and the speed at which we settle claims can vary significantly based on the type of event.

Sensitivity Analysis

The table below shows the impact on our reserve for claims and claim expenses, net income (loss) and shareholders’ equity as of and for the year ended December 31, 2024 of a reasonable range of possible outcomes associated with our estimates of gross ultimate losses for claims and claim expenses incurred within our Property segment. The reasonable range of possible outcomes is based on a distribution of outcomes of our ultimate incurred claims and claim expenses from large losses. In addition, we adjust the loss ratios and development curves in our other property lines of business in a similar fashion to the sensitivity analysis performed for our Casualty and Specialty segment, discussed in greater detail below. In general, our reserve for claims and claim expenses for more recent losses are subject to greater uncertainty and, therefore, greater variability and are likely to experience material changes from one period to the next.

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This is due to uncertainty with respect to the size of the industry losses, which contracts have been exposed to the loss and the magnitude of claims incurred by our clients. As our claims age, more information becomes available and we believe our estimates become more certain, although there is no assurance this trend will continue in the future. As a result, the sensitivity analysis below is based on the age of each accident year, our current estimated incurred claims and claim expenses for the losses occurring in each accident year, and a reasonable range of possible outcomes of our current estimates of claims and claim expenses by accident year. The impact on net income (loss) and shareholders’ equity assumes no increase or decrease in reinsurance recoveries, loss related premium or profit commission, income tax benefit (expense), or redeemable noncontrolling interest.

[[GREPCENT_TABLE]]
[["","(in thousands, except percentages)","Reserve for Claims and Claim Expenses atDecember 31,2024","","$ Impact of Change Reserve for Claimsand Claim Expensesat December 31,2024","","% Impact of Changeon Reserve for Claimsand Claim Expensesat December 31,2024","","% Impact of Change on Net Income (Loss) forthe Year EndedDecember 31, 2024","","% Impact of Change on Shareholders\u2019Equity atDecember 31, 2024"],["","Higher","$","7,114,722","","","$","541,983","","","2.5","%","","(18.3)","%","","(5.1)","%"],["","Recorded","$","6,572,739","","","$","\u2014","","","\u2014","%","","\u2014","%","","\u2014","%"],["","Lower","$","6,227,849","","","$","(344,890)","","","(1.6)","%","","11.6","%","","3.3","%"]]
[[/GREPCENT_TABLE]]

We believe the changes we made to our estimated incurred claims and claim expenses represent a reasonable range of possible outcomes based on our experience to date and our future expectations. While we believe these are a reasonable range of possible outcomes, we do not believe the above sensitivity analysis should be considered an actuarial reserve range. In addition, the sensitivity analysis only reflects a reasonable range of possible outcomes in our underlying assumptions. It is possible that our estimated incurred claims and claim expenses could be significantly higher or lower than the sensitivity analysis described above. For example, we could be liable for exposures we do not currently believe are covered under our policies. These changes could result in significantly larger changes to our estimated incurred claims and claim expenses, net income (loss) and shareholders’ equity than those noted above, and could be recorded across multiple periods. The inflationary outlook is also highly uncertain and could result in larger changes than those depicted above. We continue to monitor the inflationary environment and reflect our view within our best estimate reserves. We also caution that the above sensitivity analysis is not used by management in developing our reserve estimates and is also not used by management in managing the business.

Casualty and Specialty Segment

Actual Results vs. Initial Estimates

As discussed above, the key assumption in estimating reserves for our Casualty and Specialty segment is our estimate of incurred claims and claim expenses. Standard actuarial techniques are used to calculate the ultimate claims and claim expenses. The key assumptions in the determination of ultimate claims and claim expenses include the estimated incurred claims and claim expenses ratio and the estimated loss reporting patterns. The table below shows our initial estimates of incurred claims and claim expenses for each accident year and how these initial estimates have developed over time. The initial estimate of accident year incurred claims and claim expenses represents our estimate of the ultimate settlement and administration costs for claims incurred in our Casualty and Specialty segment occurring during a particular accident year, and as reported as of December 31 of that year. The re-estimated incurred claims and claim expenses as of December 31 of subsequent years, represent our revised estimates as reported as of those dates. Our most recent estimates as reported at December 31, 2024 differ from our initial accident year estimates and demonstrates that our initial estimate of incurred claims and claim expenses are reasonably likely to vary from our most recent estimate, perhaps significantly. Changes in this estimate will be recorded in the period in which they occur. In accident years where our current estimates are lower than our initial estimates, we have experienced favorable development while accident years where our current estimates are higher than our original estimates indicate adverse development. The table is presented on a net basis and, therefore, includes the benefit of reinsurance recoverable. In addition, we have included historical incurred claims and claim expenses development information related to Platinum, TMR and Validus in the

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table below. For incurred accident year claims denominated in currencies other than USD, we have used the current year-end balance sheet foreign exchange rate for all periods provided, thereby eliminating the effects of changes in foreign currency translation rates from the incurred accident year claims development information included in the table below.

The following table details our Casualty and Specialty segment incurred claims and claim expenses, net of reinsurance, as of December 31, 2024.

[[GREPCENT_TABLE]]
[["","","","Incurred Claims and Claim Expenses, Net of Reinsurance"],["","(in thousands)","","For the year ended December 31,"],["","Accident Year","","2015","","2016","","2017","","2018","","2019","","2020","","2021","","2022","","2023","","2024"],["","2015","","$","1,163,947","","","$","1,146,693","","","$","1,157,686","","","$","1,129,261","","","$","1,117,185","","","$","1,111,192","","","$","1,123,053","","","$","1,113,440","","","$","1,111,633","","","$","1,111,791"],["","2016","","\u2014","","","1,299,694","","","1,289,671","","","1,279,104","","","1,266,696","","","1,216,421","","","1,238,316","","","1,251,479","","","1,239,664","","","1,245,750"],["","2017","","\u2014","","","\u2014","","","1,654,981","","","1,609,944","","","1,652,932","","","1,591,696","","","1,617,118","","","1,618,379","","","1,638,659","","","1,674,949"],["","2018","","\u2014","","","\u2014","","","\u2014","","","1,641,037","","","1,784,201","","","1,779,190","","","1,776,321","","","1,778,718","","","1,867,047","","","1,907,824"],["","2019","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,544,766","","","1,545,300","","","1,548,269","","","1,578,081","","","1,650,301","","","1,708,265"],["","2020","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","2,426,514","","","2,317,602","","","2,321,233","","","2,359,373","","","2,328,413"],["","2021","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","2,775,318","","","2,629,185","","","2,520,688","","","2,466,416"],["","2022","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","3,358,625","","","3,195,993","","","3,082,867"],["","2023","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","3,807,845","","","3,823,713"],["","2024","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","4,149,000"],["","Total","","","","","","","","","","","","","","","","","","","","$","23,498,988"]]
[[/GREPCENT_TABLE]]

As each accident year has developed, our estimated expected incurred claims and claim expenses, net of reinsurance, have changed. For example, our re-estimated incurred claims and claim expenses decreased for the 2021 accident year from the initial estimates. This decrease was principally driven by actual reported and paid net claims and claim expenses associated with the 2021 accident year being lower than expected, which has resulted in a reduction in our expected ultimate claims and claim expense ratio for this accident year. In comparison, the 2019 accident year has developed adversely compared to our initial estimates of incurred claims and claim expenses and our current estimates are higher than our initial estimates. The increase in incurred claims and claim expenses for the 2019 accident year is due to reported losses generally coming in higher than expected on attritional net claims and claim expenses.

The reserving methodology for our Casualty and Specialty segment is weighted more heavily to our initial estimate in the early periods immediately following the contracts’ inception through the use of the expected loss ratio method. The expected loss ratio method estimates the incurred losses by multiplying the initial expected loss ratio by the earned premium. Under the expected loss ratio method, no reliance is placed on the development of claims and claim expenses. The determination of when reported losses are sufficient and credible to warrant selection of an ultimate loss ratio different from the initial expected loss ratio also requires judgment. We generally make adjustments for reported loss experience indicating unfavorable variances from the initial expected loss ratio sooner than reported loss experience indicating favorable variances as reporting of losses in excess of expectations tends to have greater credibility than an absence of, or lower than expected level of, reported losses. Over time, as a greater number of claims are reported and the credibility of reported losses improves, actuarial estimates of IBNR are typically based on the Bornhuetter-Ferguson actuarial method. The Bornhuetter-Ferguson actuarial method places weight on claims and claim expenses development experience. If there is adverse development of prior accident years claims and claim expenses, we generally select the Bornhuetter-Ferguson actuarial method to ensure the claim experience is considered in the determination of our estimated claims and claim expenses with the associated business. If we believe we lack the claims experience in the early stages of development of a line of business, we may not select the Bornhuetter-Ferguson actuarial method until such time as we believe there is greater credibility in the level of reported losses. As development experience for claims and claim expenses on prior accident years becomes credible, the Bornhuetter-Ferguson actuarial method is generally selected which places greater weight on this reported experience as it develops. The Bornhuetter-Ferguson actuarial method estimates our expected ultimate claims and claim expenses by applying our initial estimated loss ratio to our undeveloped premium, and adding the reported losses to the estimate.

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Sensitivity Analysis

The table below shows the impact on our Casualty and Specialty segment reserve for claims and claim expenses, net income (loss) and shareholders’ equity as of and for the year ended December 31, 2024, of a reasonable range of possible outcomes associated with a variety of reasonable actuarial assumptions for our estimates of gross ultimate claims and claim expense ratios and loss reporting patterns. The impact on net income (loss) and shareholders’ equity assumes no increase or decrease in reinsurance recoveries, loss related premium or profit commission, income tax benefit (expense), or redeemable noncontrolling interest.

[[GREPCENT_TABLE]]
[["","(in thousands, except percentages)","Estimated Loss Reporting Pattern","","$ Impact of Changeon Reserve forClaims and ClaimExpenses atDecember 31,2024","","% Impact of Changeon Reserve forClaims and ClaimExpenses atDecember 31,2024","","% Impact ofChange onNet Income (Loss)for the YearEndedDecember 31,2024","","% Impact ofChange onShareholders\u2019Equity atDecember 31,2024"],["","Increase expected claims and claim expense ratio by 10%","Slower reporting","","$","2,448,898","","","11.5","%","","(82.7)","%","","(23.2)","%"],["","Increase expected claims and claim expense ratio by 10%","Expected reporting","","$","1,473,464","","","6.9","%","","(49.8)","%","","(13.9)","%"],["","Increase expected claims and claim expense ratio by 10%","Faster reporting","","$","595,173","","","2.8","%","","(20.1)","%","","(5.6)","%"],["","Expected claims and claim expense ratio","Slower reporting","","$","890,165","","","4.2","%","","(30.1)","%","","(8.4)","%"],["","Expected claims and claim expense ratio","Expected reporting","","$","\u2014","","","\u2014","%","","\u2014","%","","\u2014","%"],["","Expected claims and claim expense ratio","Faster reporting","","$","(800,881)","","","(3.8)","%","","27.1","%","","7.6","%"],["","Decrease expected claims and claim expense ratio by 10%","Slower reporting","","$","(636,378)","","","(3.0)","%","","21.5","%","","6.0","%"],["","Decrease expected claims and claim expense ratio by 10%","Expected reporting","","$","(1,441,272)","","","(6.8)","%","","48.7","%","","13.6","%"],["","Decrease expected claims and claim expense ratio by 10%","Faster reporting","","$","(2,164,743)","","","(10.2)","%","","73.1","%","","20.5","%"]]
[[/GREPCENT_TABLE]]

We believe that ultimate claims and claim expense ratios 10.0 percentage points above or below our estimated assumptions constitute a reasonable range of possible outcomes based on our experience to date and our future expectations. In addition, we believe that the adjustments we made to speed up or slow down our estimated loss reporting patterns represent a reasonable range of possible outcomes. While we believe these are a reasonable range of possible outcomes, we do not believe the above sensitivity analysis should be considered an actuarial reserve range. In addition, the sensitivity analysis only reflects a reasonable range of possible outcomes in our underlying assumptions. It is possible that our initial estimated claims and claim expense ratios and loss reporting patterns could be significantly different from the sensitivity analysis described above. For example, we could be liable for exposures we do not currently believe are covered under our contracts. These changes could result in significantly larger changes to our reserves for claims and claim expenses, net income (loss) and shareholders’ equity than those noted above, and could be recorded across multiple periods. The inflationary outlook is also highly uncertain and could result in larger changes than those depicted above. We continue to monitor the inflationary environment and reflect our view within our best estimate reserves. We also caution that the above sensitivity analysis is not used by management in developing our reserve estimates and is also not used by management in managing the business.

Premiums and Related Expenses

Premiums are recognized as income, net of any applicable reinsurance or retrocessional coverage purchased, over the terms of the related contracts and policies. Premiums written are based on contract and policy terms and include estimates based on information received from both insureds and ceding

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companies. Subsequent revisions to premium estimates are recorded in the period in which they are determined. Unearned premiums represents the portion of premiums written that relate to the unexpired terms of contracts and policies in force. Amounts are computed by pro rata methods based on statistical data or reports received from ceding companies. Reinstatement premiums are estimated after the occurrence of a significant loss and are recorded in accordance with the contract terms based upon paid losses and case reserves. Reinstatement premiums are earned when written.

Due to the nature of reinsurance, ceding companies routinely report and remit premiums to us subsequent to the contract coverage period. Consequently, premiums written and receivable include amounts reported by the ceding companies, supplemented by our estimates of premiums that are written but not reported. The estimation of written premiums may be affected by early cancellation, election of contract provisions for cut-off and return of unearned premiums or other contract disruptions. The time lag involved in the process of reporting premiums is typically shorter than the lag in reporting losses. In addition to estimating premiums written, we estimate the earned portion of premiums written which is subject to judgment and uncertainty. Any adjustments to written and earned premiums, and the related losses and acquisition expenses, are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made.

Lines of business that are similar in both the nature of their business and estimation process may be grouped for purposes of estimating premiums. Premiums are estimated based on ceding company estimates and our own judgment after considering factors such as: (1) the ceding company’s historical premium versus projected premium, (2) the ceding company’s history of providing accurate estimates, (3) anticipated changes in the marketplace and the ceding company’s competitive position therein, (4) reported premiums to date and (5) the anticipated impact of proposed underwriting changes. Estimates of premiums written and earned are based on the selected ultimate premium estimate, the terms and conditions of the reinsurance contracts and the remaining exposure from the underlying policies. We evaluate the appropriateness of these estimates in light of the actual premium reported by the ceding companies, information obtained during audits and other information received from ceding companies.

We estimate our provision for current expected credit losses by applying specific percentages against each premiums receivable based on the counterparty’s credit ratings. The percentages applied are based on information received from both insureds and ceding companies and are then adjusted by us based on industry knowledge and our judgment and estimates. We then evaluate the overall adequacy of the provision for current expected credit losses based on other qualitative and judgmental factors. At December 31, 2024, our premiums receivable balance was $7.3 billion (2023 - $7.3 billion). Of this amount, the majority are receivables from highly rated counterparties. At December 31, 2024, the provision for current expected credit losses on premiums receivable was $4.6 million (2023 - $3.5 million).

Reinsurance Recoverable

We enter into retrocessional reinsurance agreements in order to help reduce our exposure to large losses and to help manage our risk portfolio. Amounts recoverable from reinsurers are estimated in a manner consistent with the claims and claim expense reserves associated with the related assumed reinsurance. For multi-year retrospectively rated contracts, we accrue amounts (either assets or liabilities) that are due to or from our retrocessionaires based on estimated contract experience. If we determine that adjustments to earlier estimates are appropriate, such adjustments are recorded in the period in which they are determined.

The estimate of reinsurance recoverable can be more subjective than estimating the underlying claims and claim expense reserves as discussed under the heading “Claims and Claim Expense Reserves” above. In particular, reinsurance recoverable may be affected by deemed inuring reinsurance, frequency and timing of industry losses reported by various statistical reporting services, loss development, loss buffer tables and various other factors. Reinsurance recoverable on dual trigger reinsurance contracts require us to estimate our ultimate losses applicable to these contracts as well as estimate the ultimate amount of insured industry losses that will be reported by the applicable statistical reporting agency, as per the contract terms. In addition, the level of our ACR and IBNR reserves has a significant impact on reinsurance recoverable. These factors can impact the amount and timing of the reinsurance recoverable to be recorded.

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The majority of the balance we have accrued as recoverable will not be due for collection until some point in the future. The amounts recoverable that will ultimately be collected are subject to uncertainty due to the ultimate ability and willingness of reinsurers to pay our claims at a future point in time, for reasons including insolvency or elective run-off, contractual dispute and various other reasons. In addition, because the majority of the balances recoverable will not be collected for some time, economic conditions, as well as the financial and operational performance of a particular reinsurer may change, and these changes may affect the reinsurer’s willingness and ability to meet their contractual obligations to us on uncollateralized recoverable balances. To reflect these uncertainties, we estimate and record a provision for current expected credit losses for potential uncollectible reinsurance recoverable which reduces reinsurance recoverable and net income.

We estimate our provision for current expected credit losses by applying specific percentages against each reinsurance recoverable based on our counterparty’s credit rating. The percentages applied are based on historical industry default statistics developed by major rating agencies and are then adjusted by us based on industry knowledge and our judgment and estimates. We then evaluate the overall adequacy of the provision for current expected credit losses based on other qualitative and judgmental factors. At December 31, 2024, our reinsurance recoverable balance was $4.5 billion (2023 - $5.3 billion). Of this amount, 55.7% is fully collateralized by our reinsurers, 43.2% is recoverable from reinsurers rated A- or higher by major rating agencies and 1.0% is recoverable from reinsurers rated lower than A- by major rating agencies (2023 - 60.6%, 38.5% and 0.9%, respectively). The reinsurers with the three largest balances accounted for 12.6%, 11.0% and 8.3%, respectively, of our reinsurance recoverable balance at December 31, 2024 (2023 - 17.6%, 14.3% and 8.7%, respectively). The provision for current expected credit losses recorded against reinsurance recoverable was $11.7 million at December 31, 2024 (2023 - $13.3 million). The three largest company-specific components of the provision for current expected credit losses represented 23.9%, 7.2% and 5.9%, respectively, of our total provision for current expected credit losses at December 31, 2024 (2023 - 10.9%, 10.7% and 8.1%, respectively).

Fair Value Measurements and Impairments

Fair Value

The use of fair value to measure certain assets and liabilities with resulting unrealized gains or losses is pervasive within our consolidated financial statements. Fair value is defined under accounting guidance currently applicable to us as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. We recognize the change in unrealized gains and losses arising from changes in fair value in our consolidated statements of operations.

FASB ASC Topic 820, Fair Value Measurement prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to valuation techniques that use at least one significant input that is unobservable (Level 3).

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement of the asset or liability. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and we consider factors specific to the asset or liability.

In order to determine if a market is active or inactive for a security, we consider a number of factors, including, but not limited to, the spread between what a seller is asking for a security and what a buyer is bidding for the same security, the volume of trading activity for the security in question, the price of the security compared to its par value (for fixed maturity investments), and other factors that may be indicative of market activity.

At December 31, 2024, we classified $45.8 million and $2.4 million of our assets and liabilities, respectively, at fair value on a recurring basis using Level 3 inputs (2023 - $159.8 million and $2.7 million, respectively). This represented 0.1% and 0.0% of our total assets and liabilities, respectively (2023 - 0.3% and 0.0%, respectively). Level 3 fair value measurements are based on valuation techniques that use at least one significant input that is unobservable. These measurements are made under circumstances in which there

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is little, if any, market activity for the asset or liability. We use valuation models or other pricing techniques that require a variety of inputs including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility including credit spreads and projected cash flows, prepayment rates and correlations of such inputs, some of which may be unobservable, to value these Level 3 assets and liabilities.

Refer to “Note 6. Fair Value Measurements” in our “Notes to the Consolidated Financial Statements” for additional information about fair value measurements.

Impairments

The amount and timing of asset impairment is subject to significant estimation techniques and is a critical accounting estimate for us. The significant impairment reviews we complete are for our goodwill and other intangible assets and equity method investments, as described in more detail below.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets acquired are initially recorded at fair value, the assessment of which requires significant judgments, assumptions and estimates which are inherently subjective. As discussed above, the measurement of fair values is a critical accounting estimate, and involves numerous inputs into the assessment, including a range of reasonable judgments that impact the determination of fair value. Subsequent to initial recognition, finite lived other intangible assets are amortized over their estimated useful life, subject to impairment, and goodwill and indefinite lived other intangible assets are carried at the lower of cost or fair value, subject to impairment. If goodwill or other intangible assets are impaired, they are written down to their estimated fair values with a corresponding expense reflected in our consolidated statements of operations.

We assess goodwill and other intangible assets for impairment in the second half of each year, or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. For purposes of the annual impairment evaluation, we assess qualitative factors to determine if events or circumstances exist that would lead us to conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then we do not perform a quantitative evaluation. Should we determine that a quantitative analysis is required, we will first determine the fair value of the reporting unit and compare that with the carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, then goodwill is not considered impaired and no further analysis is required. If the carrying amount of a reporting unit exceeds its fair value, we then proceed to determine the amount of the impairment charge, if any. There are many assumptions and estimates underlying the fair value calculation. Principally, we identify the reporting unit or business entity that the goodwill or other intangible asset is attributed to, and review historical and forecasted operating and financial performance and other underlying factors affecting such analysis, including market conditions. Other assumptions used could produce significantly different results which may result in a change in the value of goodwill or our other intangible assets and a related charge in our consolidated statements of operations. An impairment charge could be recognized in the event of a significant decline in the implied fair value of those operations where the goodwill or other intangible assets are applicable. In the event we determine that the value of goodwill has become impaired, an accounting charge will be taken in the fiscal quarter in which such determination is made, which could have a material adverse effect on our results of operations in the period in which the impairment charge is recorded.

As a result of our impairment assessment performed during the second and third quarters of 2024, it was determined that certain licenses associated with certain Validus entities that had been amalgamated or merged into the Company, had been cancelled. Accordingly, we determined that these indefinite lived intangible assets of $13.8 million, recognized in relation to the acquisition of Validus, should be written down to $Nil. During the year ended December 31, 2024, we recorded an intangible asset impairment charge of $13.8 million. Refer to “Note 4. Goodwill and Other Intangible Assets” in our “Notes to the Consolidated Financial Statements” for additional information with respect to the impairment.

As at December 31, 2024, excluding the amounts recorded in investments in other ventures, under the equity method, as noted below, our consolidated balance sheets include $300.5 million of goodwill (2023 - $300.5 million) and $403.6 million of other intangible assets (2023 - $474.8 million). Impairment charges related to these balances were $13.8 million during the year ended December 31, 2024 (2023 - $Nil). Refer

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to “Note 3. Acquisition of Validus” in our “Notes to the Consolidated Financial Statements” for additional information with respect to goodwill and intangible assets acquired in connection with the Validus Acquisition. In the future, it is possible we will hold more goodwill and intangible assets, which would increase the degree of judgment and uncertainty embedded in our financial statements, and potentially increase the volatility of our reported results.

Investments in Other Ventures, Under Equity Method

Investments in which we have significant influence over the operating and financial policies of the investee are classified as investments in other ventures, under equity method, and are accounted for under the equity method of accounting. Under this method, we record our proportionate share of income or loss from such investments in our results for the period. Any decline in the value of investments in other ventures, under equity method, including goodwill and other intangible assets arising upon acquisition of the investee, considered by management to be other-than-temporary, is reflected in our consolidated statements of operations in the period in which it is determined. As of December 31, 2024, we had $102.8 million (2023 - $112.6 million) in investments in other ventures, under equity method on our consolidated balance sheets, including $8.7 million of goodwill and $0.2 million of other intangible assets (2023 - $10.8 million and $7.3 million). The carrying value of our investments in other ventures, under equity method, individually or in the aggregate, may, and likely will, differ from the realized value we may ultimately attain, perhaps significantly so.

In determining whether an equity method investment is impaired, we take into consideration a variety of factors including the operating and financial performance of the investee, the investee’s future business plans and projections, recent transactions and market valuations of publicly traded companies where available, discussions with the investee’s management, and our intent and ability to hold the investment until it recovers in value. Accordingly, we make assumptions and estimates in assessing whether an impairment has occurred and if, in the future, our assumptions and estimates made in assessing the fair value of these investments change, this could result in a material decrease in the carrying value of these investments. This would cause us to write-down the carrying value of these investments and could have a material adverse effect on our results of operations in the period the impairment charge is taken. We do not have any current plans to dispose of these investments, and cannot assure you we will consummate future transactions in which we realize the value at which these holdings are reflected in our financial statements. During the year ended December 31, 2024, we recorded a $9.1 million impairment charge associated with our investments in other ventures, under equity method (2023 - $Nil).

Income Taxes

Income taxes have been determined in accordance with the provisions of FASB ASC Topic 740, Income Taxes. Deferred tax assets and liabilities result from temporary differences between the amounts recorded in our consolidated financial statements and the tax basis of our assets and liabilities. Such temporary differences are primarily due to net operating loss and capital loss carryforwards and GAAP versus tax basis accounting differences relating to unearned premiums, reserves for claims and claim expenses, deferred finance charges, deferred underwriting results, accrued expenses, investments, value of in-force business, VOBA, deferred acquisition expenses, intangible assets, and amortization and depreciation, among others. The effect on deferred tax assets and liabilities of a change in tax laws or tax rates is recognized in income in the period in which the change is enacted. A valuation allowance against net deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to net deferred tax assets will not be realized. Significant judgments, assumptions and estimates which are inherently subjective are required in determining income tax expense, temporary differences, the deferred tax impact of a change in law, and valuation allowances.

At December 31, 2024, our net deferred tax asset before valuation allowance and valuation allowance were $822.6 million and $147.1 million, respectively (2023 - $864.7 million and $213.3 million, respectively). See “Note 15. Taxation” in our “Notes to the Consolidated Financial Statements” for additional information. At each balance sheet date, we assess the need to establish a valuation allowance that reduces the net deferred tax asset when it is more likely than not that all, or some portion, of the net deferred tax assets will not be realized. The valuation allowance assessment is performed separately in each taxable jurisdiction based on all available information including projections of future GAAP taxable income from each tax-paying component in each tax jurisdiction. 

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We have unrecognized tax benefits of $Nil as of December 31, 2024 (2023 - $Nil). Interest and penalties related to unrecognized tax benefits, would be recognized in income tax expense. At December 31, 2024, interest and penalties accrued on unrecognized tax benefits were $Nil (2023 - $Nil).

The following filed income tax returns are open for examination with the applicable tax authorities: tax years 2018 through 2023 with the U.S.; 2020 through 2023 with Ireland; 2022 through 2023 with the U.K.; 2020 through 2023 with Singapore; 2021 through 2023 with Switzerland; 2020 through 2023 with Australia; 2020 through 2023 with Canada; and 2019 through 2023 with Luxembourg. We do not expect the resolution of these open years to have a significant impact on our consolidated statements of operations and financial condition.

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SUMMARY OF RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","(in thousands, except per share amounts and percentages)"],["","Statements of Operations Highlights"],["","Year ended December 31,","2024","","2023","","Change"],["","Gross premiums written","$","11,733,066","","","$","8,862,366","","","$","2,870,700"],["","Net premiums written","$","9,952,216","","","$","7,467,813","","","$","2,484,403"],["","Net premiums earned","$","10,095,760","","","$","7,471,133","","","$","2,624,627"],["","Net claims and claim expenses incurred","5,332,981","","","3,573,509","","","1,759,472"],["","Acquisition expenses","2,643,867","","","1,875,034","","","768,833"],["","Operational expenses","496,588","","","375,182","","","121,406"],["","Underwriting income (loss)","$","1,622,324","","","$","1,647,408","","","$","(25,084)"],["","Net investment income","$","1,654,289","","","$","1,253,110","","","$","401,179"],["","Net realized and unrealized gains (losses) on investments","(27,840)","","","414,522","","","(442,362)"],["","Total investment result","$","1,626,449","","","$","1,667,632","","","$","(41,183)"],["","Net income (loss)","$","2,960,532","","","$","3,620,127","","","$","(659,595)"],["","Net income (loss) available (attributable) to RenaissanceRe common shareholders","$","1,834,985","","","$","2,525,757","","","$","(690,772)"],["","Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share \u2013 diluted","$","35.21","","","$","52.27","","","$","(17.06)"],["","Dividends per common share","$","1.56","","","$","1.52","","","$","0.04"],["","Key Ratios"],["","Year ended December 31,","2024","","2023","","Change"],["","Net claims and claim expense ratio \u2013 current accident year","61.3","%","","53.9","%","","7.4","pts"],["","Net claims and claim expense ratio \u2013 prior accident years","(8.5)","%","","(6.1)","%","","(2.4)","pts"],["","Net claims and claim expense ratio \u2013 calendar year","52.8","%","","47.8","%","","5.0","pts"],["","Underwriting expense ratio","31.1","%","","30.1","%","","1.0","pts"],["","Combined ratio","83.9","%","","77.9","%","","6.0","pts"],["","Return on average common equity","19.3","%","","40.5","%","","(21.2)","pts"],["","Book Value"],["","At December 31,","2024","","2023","","Change"],["","Book value per common share","$","195.77","","","$","165.20","","","$","30.57"],["","Accumulated dividends per common share","28.08","","","26.52","","","1.56"],["","Book value per common share plus accumulated dividends","$","223.85","","","$","191.72","","","$","32.13"],["","Change in book value per common share plus change in accumulated dividends","19.4","%","","59.3","%","","(39.9)","pts"]]
[[/GREPCENT_TABLE]]

69

Results of Operations for 2024 Compared to 2023

Net income available to RenaissanceRe common shareholders was $1.8 billion in 2024, compared to $2.5 billion in 2023. As a result of our net income available to RenaissanceRe common shareholders in 2024, we generated an annualized return on average common equity of 19.3% and our book value per common share increased from $165.20 at December 31, 2023 to $195.77 at December 31, 2024, a 19.4% increase, after considering the change in accumulated dividends paid to our common shareholders.

The most significant items affecting our financial performance during 2024, on a comparative basis to 2023, include:

•Underwriting Results - we generated underwriting income of $1.6 billion and had a combined ratio of 83.9% in the year ended December 31, 2024, compared to underwriting income of $1.6 billion and a combined ratio of 77.9% in the year ended December 31, 2023. Our underwriting income in the year ended December 31, 2024 was comprised of our Property segment, which generated underwriting income of $1.6 billion and had a combined ratio of 57.2%, and our Casualty and Specialty segment, which incurred an underwriting loss of $25.4 million and had a combined ratio of 100.4%. In comparison, our underwriting income in the year ended December 31, 2023 was comprised of our Property segment, which generated underwriting income of $1.4 billion and had a combined ratio of 53.4%, and our Casualty and Specialty segment, which generated underwriting income of $208.1 million and had a combined ratio of 95.2%;

Included in our underwriting results in the year ended December 31, 2024 was the impact of the 2024 Large Loss Events, which resulted in a net negative impact on the underwriting result of $847.4 million and added 8.8 percentage points to the consolidated combined ratio. In comparison, our underwriting results in the year ended December 31, 2023 were impacted by the 2023 Large Loss Events, which resulted in a net negative impact on the underwriting result of $298.6 million and added 4.1 percentage points to the combined ratio, primarily within in our Property segment;

•Gross Premiums Written - our gross premiums written increased by $2.9 billion, or 32.4%, to $11.7 billion, in the year ended December 31, 2024, compared to the year ended December 31, 2023. This was comprised of an increase of $1.6 billion in our Casualty and Specialty segment and an increase of $1.3 billion in our Property segment, both primarily driven by the renewal of business acquired in the Validus Acquisition, in conjunction with organic growth on legacy lines;

•Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains (losses) on investments, was income of $1.6 billion in the year ended December 31, 2024, compared to $1.7 billion in the year ended December 31, 2023, a decrease of $41.2 million. The primary drivers of the lower total investment result include an increase of $442.4 million in net realized and unrealized losses on investments, which was partially offset by an increase in net investment income of $401.2 million. The change in net realized and unrealized gains (losses) on investments was a result of net realized and unrealized losses on fixed maturity investments of $246.4 million in the year ended December 31, 2024, compared to net realized and unrealized gains of $292.1 million in the year ended December 31, 2023, primarily due to increases in yields on longer duration assets during 2024, compared to decreases in 2023. Offsetting the increase in net unrealized losses on fixed maturity investments was an increase in net realized and unrealized gains on other investments of $159.4 million, driven by an increase in the value of our investment in TWFG as a result of TWFG, Inc.’s initial public offering in 2024. The increase in net investment income was due to a combination of higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets in the fixed maturity investments portfolio;

•Net Income Attributable to Redeemable Noncontrolling Interests - our net income attributable to redeemable noncontrolling interests was $1.1 billion in the year ended December 31, 2024, compared to $1.1 billion in the year ended December 31, 2023, an increase of $31.2 million. The higher net income attributable to redeemable noncontrolling interests in the year ended December 31, 2024 was primarily driven by strong underwriting income generated by DaVinci and Vermeer, partially offset by a decrease in net realized and unrealized gains on investments. The decrease in net realized and unrealized gains on investments was primarily due to the increases in interest rates during 2024 discussed above driving net realized and unrealized losses on the investment portfolios of our joint ventures and managed funds;

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•Impact of Large Loss Events - we had a net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders of $660.5 million resulting from the 2024 Large Loss Events. This compares to a net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders of $213.4 million resulting from the 2023 Large Loss Events.

Net Negative Impact

Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest, both before consideration of any related income tax benefit (expense).

Our estimates of net negative impact are based on a review of our potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. Our actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.

Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of the events, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things.

2024 Net Negative Impact

The financial data below provides additional information detailing the net negative impact of the 2024 Large Loss Events on our segment underwriting results and consolidated financial statements for the year ended December 31, 2024.

[[GREPCENT_TABLE]]
[["","Year ended December 31, 2024","Hurricane Milton","","Hurricane Helene","","Other 2024 Large Loss Events (1)","","2024 Large Loss Events (2)"],["","(in thousands, except percentages)"],["","Net negative impact on Property segment underwriting result","$","(332,710)","","","$","(179,618)","","","$","(267,513)","","","$","(779,841)"],["","Net negative impact on Casualty and Specialty segment underwriting result","\u2014","","","(605)","","","(66,907)","","","(67,512)"],["","Net negative impact on underwriting result","$","(332,710)","","","$","(180,223)","","","$","(334,420)","","","$","(847,353)"],["","Percentage point impact on consolidated combined ratio","3.4","","","1.8","","","3.6","","","8.8"]]
[[/GREPCENT_TABLE]]

The financial data below provides additional information detailing the net negative impact of the 2024 Large Loss Events on our consolidated financial statements for the year ended December 31, 2024.

[[GREPCENT_TABLE]]
[["","Year ended December 31, 2024","Hurricane Milton","","Hurricane Helene","","Other 2024 Large Loss Events (1)","","2024 Large Loss Events (2)"],["","(in thousands)"],["","Net claims and claim expenses incurred","$","(406,878)","","","$","(217,767)","","","$","(381,330)","","","$","(1,005,975)"],["","Assumed reinstatement premiums earned","86,128","","","40,655","","","53,159","","","179,942"],["","Ceded reinstatement premiums earned","(2,158)","","","(931)","","","(9,971)","","","(13,060)"],["","Earned (lost) profit commissions","(9,802)","","","(2,180)","","","3,722","","","(8,260)"],["","Net negative impact on underwriting result","(332,710)","","","(180,223)","","","(334,420)","","","(847,353)"],["","Redeemable noncontrolling interest","62,229","","","36,969","","","87,625","","","186,823"],["","Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders","$","(270,481)","","","$","(143,254)","","","$","(246,795)","","","$","(660,530)"]]
[[/GREPCENT_TABLE]]

(1)“Other 2024 Large Loss Events” includes: the Baltimore Bridge Collapse; a series of severe convective storms that impacted the Southern and Midwest United States; the Hualien earthquake which impacted Taiwan in April 2024; a severe hailstorm which impacted Calgary in August 2024, Hurricane Debby, Hurricane Beryl, and certain aggregate loss contracts triggered during 2024.

(2)“2024 Large Loss Events” includes: Hurricane Milton, Hurricane Helene and the “Other 2024 Large Loss Events.”

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2023 Net Negative Impact

The financial data below provides additional information detailing the net negative impact of the 2023 Large Loss Events on our segment underwriting results and consolidated financial statements for the year ended December 31, 2023.

[[GREPCENT_TABLE]]
[["","Year ended December 31, 2023","","2023 Large Loss Events (1)"],["","(in thousands, except percentages)"],["","Net negative impact on Property segment underwriting result","","$","(298,119)"],["","Net negative impact on Casualty and Specialty segment underwriting result","","(507)"],["","Net negative impact on underwriting result","","$","(298,626)"],["","Percentage point impact on consolidated combined ratio","","4.1"]]
[[/GREPCENT_TABLE]]

The financial data below provides additional information detailing the net negative impact of the 2023 Large Loss Events on our consolidated financial statements for the year ended December 31, 2023.

[[GREPCENT_TABLE]]
[["","Year ended December 31, 2023","","2023 Large Loss Events (1)"],["","(in thousands)"],["","Net claims and claim expenses incurred","","$","(354,228)"],["","Assumed reinstatement premiums earned","","46,534"],["","Ceded reinstatement premiums earned","","(62)"],["","Earned (lost) profit commissions","","9,130"],["","Net negative impact on underwriting result","","(298,626)"],["","Redeemable noncontrolling interest","","85,276"],["","Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders","","$","(213,350)"]]
[[/GREPCENT_TABLE]]

(1)“2023 Large Loss Events” includes: Hurricane Otis and Storm Ciaran in October and November 2023, the wildfires in Hawaii in August 2023 and Hurricane Idalia, a series of large, severe weather events in Texas and other southern and central U.S. states in June 2023, the earthquakes in southern and central Turkey in February 2023, Cyclone Gabrielle, the flooding in northern New Zealand in January and February 2023, and various wind and thunderstorm events in both the Southern and Midwest U.S. during March 2023, and certain aggregate loss contracts triggered during 2023.

72

Underwriting Results by Segment

Property Segment

Below is a summary of the underwriting results and ratios for our Property segment:

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands, except percentages)"],["","Gross premiums written","$","4,823,731","","$","3,562,414","","$","1,261,317"],["","Net premiums written","$","3,833,636","","$","2,967,309","","$","866,327"],["","Net premiums earned","$","3,850,352","","$","3,090,792","","$","759,560"],["","Net claims and claim expenses incurred","1,141,726","","799,905","","341,821"],["","Acquisition expenses","758,554","","600,127","","158,427"],["","Operational expenses","302,360","","251,433","","50,927"],["","Underwriting income (loss)","$","1,647,712","","$","1,439,327","","$","208,385"],["","Net claims and claim expenses incurred \u2013 current accident year","$","1,960,578","","$","1,208,810","","$","751,768"],["","Net claims and claim expenses incurred \u2013 prior accident years","(818,852)","","(408,905)","","(409,947)"],["","Net claims and claim expenses incurred \u2013 total","$","1,141,726","","$","799,905","","$","341,821"],["","Net claims and claim expense ratio \u2013 current accident year","50.9","%","","39.1","%","","11.8","pts"],["","Net claims and claim expense ratio \u2013 prior accident years","(21.2)","%","","(13.2)","%","","(8.0)","pts"],["","Net claims and claim expense ratio \u2013 calendar year","29.7","%","","25.9","%","","3.8","pts"],["","Underwriting expense ratio","27.5","%","","27.5","%","","\u2014","pts"],["","Combined ratio","57.2","%","","53.4","%","","3.8","pts"]]
[[/GREPCENT_TABLE]]

Property Gross Premiums Written

In 2024, our Property segment gross premiums written increased by $1.3 billion, or 35.4%, to $4.8 billion, compared to $3.6 billion in 2023.

Gross premiums written in the catastrophe class of business were $3.0 billion in 2024, an increase of $850.6 million, or 39.6%, compared to 2023. This increase was principally driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, during 2024.

Gross premiums written in the other property class of business were $1.8 billion in 2024, an increase of $410.8 million, or 29.0%, compared to 2023. The increase in gross premiums written in the other property class of business was principally due to the renewal of business acquired in the Validus Acquisition and organic growth in both our catastrophe and non-catastrophe exposed business.

Property Ceded Premiums Written

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Ceded premiums written","$","990,095","","","$","595,105","","","$","394,990"]]
[[/GREPCENT_TABLE]]

Due to the potential volatility of the reinsurance contracts which we sell, we purchase reinsurance to reduce our exposure to large losses and to help manage our risk portfolio. To the extent that appropriately priced coverage is available, we anticipate continued use of retrocessional reinsurance to reduce the impact of large losses on our financial results and to manage our portfolio of risk; however, the buying of ceded reinsurance in our Property segment is based on market opportunities and is not based on placing a specific reinsurance program each year. In addition, in future periods, we may utilize the growing market for insurance-linked securities to expand our purchases of retrocessional reinsurance if we find the pricing and terms of such coverages attractive.

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Ceded premiums written in our Property segment increased 66.4%, to $990.1 million, in 2024, compared to $595.1 million in 2023. The increase in ceded purchases reflects our larger portfolio resulting from the Validus Acquisition and organic growth, as well as increased utilization of Upsilon, as part of our gross-to-net strategy.

Property Net Premiums Written

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Net premiums written","$","3,833,636","","","$","2,967,309","","","$","866,327"]]
[[/GREPCENT_TABLE]]

Net premiums written in our Property segment were $3.8 billion in 2024, an increase of $866.3 million, or 29.2%, compared to 2023, consistent with the changes in gross premiums written discussed above, partially offset by an increase in ceded premiums written as part of our gross-to-net strategy.

Property Underwriting Results

Our Property segment generated underwriting income of $1.6 billion in 2024, compared to $1.4 billion in 2023, an increase in underwriting income of $208.4 million. In 2024, our Property segment generated a net claims and claim expense ratio of 29.7%, an underwriting expense ratio of 27.5% and a combined ratio of 57.2%, compared to 25.9%, 27.5% and 53.4%, respectively, in 2023.

Impacting the Property segment underwriting result and combined ratio in 2024 were the 2024 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $779.8 million and added 23.0 percentage points to its combined ratio. In comparison, 2023 was impacted by the 2023 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $298.1 million and added 10.5 percentage points to its combined ratio.

The net claims and claim expense ratio of 29.7% was comprised of a current accident year net claims and claim expense ratio of 50.9% and 21.2 percentage points of net favorable development on prior accident years. The net favorable development on prior accident years is primarily driven by net favorable development of $622.2 million from the large loss events across the 2017 to 2023 accident years, including $464.4 million from 2021 and 2022 Weather-Related Large Losses, driven by better than expected loss emergence and net favorable development on net attritional losses within the other property class of business. In comparison, 2023 had a net claims and claim expense ratio of 25.9%, comprised of a current accident year net claims and claim expense ratio of 39.1% and 13.2 percentage points of net favorable development on prior accident years.

The underwriting expense ratio of 27.5% was comprised of an acquisition expense ratio of 19.6% and an operational expense ratio of 7.9%. In comparison, 2023 had an underwriting expense ratio of 27.5%, comprised of an acquisition expense ratio of 19.4% and an operational expense ratio of 8.1%. The acquisition ratio of 19.6% in 2024 includes 1.9 percentage points of purchase accounting adjustments relating to the Validus Acquisition, which was offset by lower acquisition expenses due to changes in the mix of business as a result of continued relative growth in the catastrophe class of business, which has a lower acquisition expense ratio than the other property class of business.

In 2024, Property segment underwriting income was reduced by total purchase accounting adjustments of $89.3 million, which added 2.3 percentage points to the Property segment combined ratio.

Refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Estimates—Claims and Claim Expense Reserves” and “Note 8. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional discussion of our reserving techniques and prior year development of net claims and claim expenses.

74

Casualty and Specialty Segment

Below is a summary of the underwriting results and ratios for our Casualty and Specialty segment:

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands, except percentages)"],["","Gross premiums written","$","6,909,335","","","$","5,299,952","","","$","1,609,383"],["","Net premiums written","$","6,118,580","","","$","4,500,504","","","$","1,618,076"],["","Net premiums earned","$","6,245,408","","","$","4,380,341","","","$","1,865,067"],["","Net claims and claim expenses incurred","4,191,255","","","2,773,604","","","1,417,651"],["","Acquisition expenses","1,885,313","","","1,274,907","","","610,406"],["","Operational expenses","194,228","","","123,749","","","70,479"],["","Underwriting income (loss)","$","(25,388)","","","$","208,081","","","$","(233,469)"],["","Net claims and claim expenses incurred \u2013 current accident year","$","4,223,737","","","$","2,815,306","","","$","1,408,431"],["","Net claims and claim expenses incurred \u2013 prior accident years","(32,482)","","","(41,702)","","","9,220"],["","Net claims and claim expenses incurred \u2013 total","$","4,191,255","","","$","2,773,604","","","$","1,417,651"],["","Net claims and claim expense ratio \u2013 current accident year","67.6","%","","64.3","%","","3.3","pts"],["","Net claims and claim expense ratio \u2013 prior accident years","(0.5)","%","","(1.0)","%","","0.5","pts"],["","Net claims and claim expense ratio \u2013 calendar year","67.1","%","","63.3","%","","3.8","pts"],["","Underwriting expense ratio","33.3","%","","31.9","%","","1.4","pts"],["","Combined ratio","100.4","%","","95.2","%","","5.2","pts"]]
[[/GREPCENT_TABLE]]

Casualty and Specialty Gross Premiums Written

In 2024, our Casualty and Specialty segment gross premiums written increased by $1.6 billion, or 30.4%, to $6.9 billion, compared to $5.3 billion in 2023. This increase is principally due to the renewal of business acquired in the Validus Acquisition, in conjunction with the retention and organic growth of legacy lines. This growth is primarily reflected in the other specialty, general casualty and credit classes of business, which increased $926.5 million, $550.7 million and $132.4 million, respectively, compared to 2023.

Our relative mix of business between proportional business and excess of loss business has fluctuated in the past and has the potential to change in the future. Proportional business, which represents the majority of our Casualty and Specialty segment business, typically has a higher expense ratio and tends to be exposed to more attritional and frequent losses, while being subject to less expected severity as compared to traditional excess of loss business.

Casualty and Specialty Ceded Premiums Written

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Ceded premiums written","$","790,755","","","$","799,448","","","$","(8,693)"]]
[[/GREPCENT_TABLE]]

We purchase reinsurance to reduce our exposure to large losses and to help manage our risk portfolio. To the extent that appropriately priced coverage is available, we anticipate continued use of retrocessional reinsurance to reduce the impact of large losses on our financial results and to manage our portfolio of risk. As in our Property segment, the buying of ceded reinsurance in our Casualty and Specialty segment is based on market opportunities and is not based on placing a specific reinsurance program each year.

Ceded premiums written in our Casualty and Specialty segment decreased by 1.1%, to $790.8 million, in 2024, compared to $799.4 million in 2023, principally due to a decrease in amount of quota share

75

retrocessional coverage purchased, partially offset by the increase in gross premiums written subject to our retrocessional reinsurance programs.

Casualty and Specialty Net Premiums Written

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Net premiums written","$","6,118,580","","","$","4,500,504","","","$","1,618,076"]]
[[/GREPCENT_TABLE]]

Net premiums written in our Casualty and Specialty segment increased by $1.6 billion, or 36.0%, consistent with the changes in gross premiums written and quota share retrocessional coverage purchased as discussed above.

Casualty and Specialty Underwriting Results

Our Casualty and Specialty segment incurred an underwriting loss of $25.4 million in 2024, compared to underwriting income of $208.1 million in 2023. In 2024, our Casualty and Specialty segment generated a net claims and claim expense ratio of 67.1%, an underwriting expense ratio of 33.3% and a combined ratio of 100.4%, compared to 63.3%, 31.9% and 95.2%, respectively, in 2023.

The increase in the Casualty and Specialty segment combined ratio in 2024 to 100.4% was principally driven by an increase of 3.8 percentage points in the net claims and claim expense ratio and an increase of 1.4 percentage points in the underwriting expense ratio.

The increase in the net claims and claim expense ratio was driven by higher current accident year losses, mainly as a result of higher attritional losses within certain casualty lines of business, and the impact of event losses on catastrophe exposed lines within the other specialty class of business. The other specialty class of business included losses related to the Baltimore Bridge Collapse, which added approximately 1.0 percentage point of loss in 2024. During 2024 our Casualty and Specialty segment also experienced net favorable development on prior accident years net claims and claim expenses of $32.5 million, or 0.5 percentage points, compared to $41.7 million, or 1.0 percentage point during 2023. The net favorable development during both 2024 and 2023 was primarily driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses from our professional liability, other specialty and credit classes of business, partially offset by higher attritional losses in the general liability line of business.

The increase in the underwriting expense ratio of 1.4 percentage point was primarily driven by a 1.1 percentage point increase in the acquisition expense ratio from the impact of purchase accounting adjustments related to the Validus Acquisition.

In 2024, our Casualty and Specialty segment underwriting loss included expenses related to purchase accounting adjustments of $153.7 million, which added 2.4 percentage points to the Casualty and Specialty segment combined ratio.

Refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Estimates—Claims and Claim Expense Reserves” and “Note 8. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional discussion of our reserving techniques and prior year development of net claims and claim expenses.

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Fee Income

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Management Fee Income"],["","Joint ventures","$","157,427","","","$","122,474","","","$","34,953"],["","Structured reinsurance products and other","29,205","","","27,754","","","1,451"],["","Managed funds","33,228","","","26,371","","","6,857"],["","Total management fee income","219,860","","","176,599","","","43,261"],["","Performance Fee Income"],["","Joint ventures","74,903","","","50,656","","","24,247"],["","Structured reinsurance products and other","21,248","","","8,582","","","12,666"],["","Managed funds","10,785","","","957","","","9,828"],["","Total performance fee income","106,936","","","60,195","","","46,741"],["","Total fee income","$","326,796","","","$","236,794","","","$","90,002"]]
[[/GREPCENT_TABLE]]

The table above shows total fee income earned through third-party capital management activities, including various joint ventures, managed funds and certain structured retrocession agreements to which we are a party. Performance fees are based on the performance of the individual vehicles or products, and may be zero or negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. Joint ventures include DaVinci, Top Layer, Vermeer, and Fontana. Managed funds include Upsilon Fund and Medici. In addition, we manage certain third party capital vehicles through AlphaCat Managers, which were acquired in connection with the Validus Acquisition. Structured reinsurance products and other includes certain reinsurance contracts and certain other vehicles through which we transfer risk to third-party capital.

In 2024, total fee income earned through our third-party capital management activities increased by $90.0 million, to $326.8 million, compared to $236.8 million in 2023, driven by both higher management fee income and performance fee income.

Management fee income increased $43.3 million compared to 2023, driven by increased capital managed at DaVinci and Fontana, as well as the addition of fees earned by AlphaCat Managers.

Performance fee income increased $46.7 million compared to 2023, driven by improved current year underwriting results, primarily in DaVinci, Upsilon RFO and in our structured reinsurance products.

The fees earned through third-party capital management activities are principally recorded through redeemable noncontrolling interest, or as an increase to underwriting income through a decrease in operational expenses or acquisition expenses. Below is a summary of the impact of fee income on the applicable financial statement line items.

[[GREPCENT_TABLE]]
[["","Year ended December 31","2024","","2023","","Change"],["","(in thousands)"],["","Underwriting income (loss) (1)","$","42,923","","","$","34,432","","","$","8,491"],["","Equity in earnings (losses) of other ventures","\u2014","","","(1,423)","","","1,423"],["","Net income (loss) attributable to redeemable noncontrolling interest","283,873","","","203,785","","","80,088"],["","Total fee income","$","326,796","","","$","236,794","","","$","90,002"]]
[[/GREPCENT_TABLE]]

(1)Reflects total fee income earned through third-party capital management as well as various joint ventures, managed funds and certain structured retrocession agreements to which we are a party, recorded through underwriting income (loss) as a decrease to operational expenses or acquisition expenses. The $42.9 million includes $51.0 million of management fee income, recorded as a reduction to operational expenses and $(8.1) million of performance fee income recorded as an increase to acquisition expenses (2023 - $34.4 million, $46.4 million and $(12.0) million, respectively).

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In addition to the $42.9 million of fee income earned through our third-party capital management activities that was recorded through underwriting income (loss), as detailed above, we also earn additional fee income on certain other underwriting-related activities. These fees, in the aggregate, are recorded as a reduction to operational expenses or acquisition expenses, as applicable. The total fees recorded through underwriting income (loss) are detailed in the table below.

[[GREPCENT_TABLE]]
[["","Year ended December 31","2024","","2023","","Change"],["","(in thousands)"],["","Underwriting income (loss) - fee income on third-party capital management activities","$","42,923","","","$","34,432","","","$","8,491"],["","Underwriting income (loss) - additional fee income on other underwriting-related activities","69,201","","","94,577","","","(25,376)"],["","Total fee income recorded through underwriting income (loss) (1)","$","112,124","","","$","129,009","","","(16,885)"],["","Impact of Total fees recorded through underwriting income (loss) on the combined ratio","1.1","%","","1.7","%","","(0.6)","pts"]]
[[/GREPCENT_TABLE]]

(1)The $112.1 million includes $114.3 million of management fee income, recorded as a reduction to operational expenses and $(2.2) million of performance fee income recorded as an increase to acquisition expenses (2023 - $129.0 million, $125.1 million and reduction of $3.9 million, respectively).

Investment Results

Net Investment Income

The components of net investment income are as follows:

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Fixed maturity investments trading","$","1,116,649","","","$","744,457","","","$","372,192"],["","Short term investments","183,153","","","213,303","","","(30,150)"],["","Equity investments","2,460","","","7,261","","","(4,801)"],["","Other investments"],["","Catastrophe bonds","238,844","","","200,572","","","38,272"],["","Other","82,457","","","87,296","","","(4,839)"],["","Cash and cash equivalents","54,241","","","23,123","","","31,118"],["","","1,677,804","","","1,276,012","","","401,792"],["","Investment expenses","(23,515)","","","(22,902)","","","(613)"],["","Net investment income","$","1,654,289","","","$","1,253,110","","","$","401,179"]]
[[/GREPCENT_TABLE]]

Net investment income was $1.7 billion in 2024, compared to $1.3 billion in 2023, an increase of $401.2 million. This increase was driven by a combination of higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets in the fixed maturity investments portfolio.

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Net Realized and Unrealized Gains (Losses) on Investments

Net realized and unrealized gains (losses) on investments are as follows:

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Gross realized gains on fixed maturity investments trading","$","142,243","","","$","80,905","","","$","61,338"],["","Gross realized losses on fixed maturity investments trading","(206,172)","","","(473,946)","","","267,774"],["","Net realized gains (losses) on fixed maturity investments trading","(63,929)","","","(393,041)","","","329,112"],["","Net unrealized gains (losses) on fixed maturity investments trading","(182,494)","","","685,095","","","(867,589)"],["","Net realized and unrealized gains (losses) on investment-related derivatives (1)","(57,279)","","","(68,272)","","","10,993"],["","Net realized gains (losses) on equity investments","355","","","(27,492)","","","27,847"],["","Net unrealized gains (losses) on equity investments","10,621","","","73,243","","","(62,622)"],["","Net realized and unrealized gains (losses) on equity investments","10,976","","","45,751","","","(34,775)"],["","Net realized and unrealized gains (losses) on other investments - catastrophe bonds","62,353","","","101,897","","","(39,544)"],["","Net realized and unrealized gains (losses) on other investments - other","202,533","","","43,092","","","159,441"],["","Net realized and unrealized gains (losses) on investments","$","(27,840)","","","$","414,522","","","$","(442,362)"]]
[[/GREPCENT_TABLE]]

(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives, equity investments related derivatives and commodity related derivatives. See “Note 19. Derivative Instruments” in our “Notes to Consolidated Financial Statements” for additional information.

We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. A large majority of our investments are invested in the fixed income markets and, therefore, our realized and unrealized holding gains and losses on investments are highly correlated to fluctuations in interest rates. As interest rates decline, we will tend to have realized and unrealized gains from our investment portfolio, and as interest rates rise, we will tend to have realized and unrealized losses from our investment portfolio.

Net realized and unrealized losses on investments were $27.8 million in 2024, compared to gains of $414.5 million in 2023. Principally impacting the increase in our net realized and unrealized losses on investments in 2024 were:

•net realized and unrealized losses on our fixed maturity investments trading portfolio of $246.4 million in 2024 compared to net realized and unrealized gains of $292.1 million in 2023, primarily as a result of increases in yields on longer duration assets in 2024 compared to decreases in 2023;

•net realized and unrealized gains on other investments of $202.5 million in 2024 compared to net realized and unrealized gains of $43.1 million in 2023, driven by an increase in the value of our investment in TWFG as a result of TWFG, Inc.’s initial public offering in 2024; and

•net realized and unrealized gains on catastrophe bonds of $62.4 million in 2024, compared to $101.9 million in 2023, a decrease of $39.5 million. The decrease in net realized and unrealized gains were driven by narrowing risk spreads in the catastrophe bond market, which were generally greater in 2023 compared to 2024. The net realized and unrealized gains are primarily reflected in the Medici portfolio, and are predominantly attributable to third-party investors and allocated through net (income) loss attributable to redeemable noncontrolling interest.

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Net Foreign Exchange Gains (Losses)

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Net foreign exchange gains (losses)","$","(76,076)","","","$","(41,479)","","","$","(34,597)"]]
[[/GREPCENT_TABLE]]

In 2024, net foreign exchange losses were $76.1 million compared to $41.5 million in 2023. The increase in net foreign exchange losses for 2024 compared to 2023 is primarily driven by lower losses attributable to third-party investors in Medici in the current period, which are allocated through net (income) loss attributable to redeemable noncontrolling interest, slightly offset by a higher impact of certain foreign exchange exposures related to our underwriting activities in the current period compared to the prior period.

Our functional currency is the U.S. dollar. We routinely write a portion of our business in currencies other than U.S. dollars and invest a portion of our cash and investment portfolio in those currencies. We are primarily impacted by foreign currency exposures associated with our underwriting operations and our investment portfolio, and may, from time to time, enter into foreign currency forward and option contracts to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities.

Refer to “Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk” for additional information related to our exposure to foreign currency risk and “Note 19. Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information related to foreign currency forward and option contracts we have entered into.

Equity in Earnings (Losses) of Other Ventures

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Equity in earnings (losses) of other ventures","$","47,087","","","$","43,474","","","$","3,613"]]
[[/GREPCENT_TABLE]]

Equity in earnings (losses) of other ventures represents our pro-rata share of the net income from our investments in a select group of insurance and insurance-related companies, including the Tower Hill Companies and Top Layer. Except for Top Layer, which is recorded on a current quarter basis, equity in earnings (losses) of other ventures is recorded one quarter in arrears. The carrying value of these investments on our consolidated balance sheets, individually or in the aggregate, may differ from the realized value we may ultimately attain, perhaps significantly so.

Earnings from our investments in other ventures was $47.1 million in 2024, compared to $43.5 million in 2023, an increase of $3.6 million.

Corporate Expenses

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Corporate expenses","$","134,784","","","$","127,642","","","$","7,142"]]
[[/GREPCENT_TABLE]]

Corporate expenses include certain executive, director, legal and consulting expenses, costs for research and development, and other miscellaneous costs, including those associated with operating as a publicly traded company, as well as costs incurred in connection with the acquisition of Validus. From time to time, we may revise the allocation of certain expenses between corporate and operational expenses to better reflect the characteristic of the underlying expense.

Corporate expenses increased $7.1 million to $134.8 million, in 2024, compared to $127.6 million in 2023. The increase was primarily driven by expenses associated with the Validus Acquisition.

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Interest Expense and Preference Share Dividends

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Interest Expense"],["","$750.0 million 5.750% Senior Notes due 2033","$","43,125","","","$","24,557","","","$","18,568"],["","$400.0 million 3.600% Senior Notes due 2029","14,400","","","14,400","","","\u2014"],["","$300.0 million 3.450% Senior Notes due 2027","10,350","","","10,350","","","\u2014"],["","$300.0 million 3.700% Senior Notes due 2025","11,100","","","11,100","","","\u2014"],["","$150.0 million 4.750% Senior Notes due 2025 (DaVinci)","7,125","","","7,125","","","\u2014"],["","Medici Revolving Credit Facility","2,502","","","\u2014","","","2,502"],["","Other","5,166","","","5,649","","","(483)"],["","Total interest expense","93,768","","","73,181","","","20,587"],["","Preference Share Dividends"],["","$250.0 million 5.750% Series F Preference Shares","14,375","","","14,375","","","\u2014"],["","$500.0 million 4.20% Series G Preference Shares","21,000","","","21,000","","","\u2014"],["","Total preference share dividends","35,375","","","35,375","","","\u2014"],["","Total interest expense and preference share dividends","$","129,143","","","$","108,556","","","$","20,587"]]
[[/GREPCENT_TABLE]]

Interest expense increased $20.6 million to $93.8 million in 2024, compared to $73.2 million in 2023, primarily driven by additional interest expense resulting from the issuance of $750.0 million principal amount in June 2023 of 5.750% Senior Notes due 2033.

Income Tax Benefit (Expense)

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Income tax benefit (expense)","$","(32,628)","","","$","510,067","","","$","(542,695)"]]
[[/GREPCENT_TABLE]]

We are subject to income taxes in certain jurisdictions in which we operate; however, since the majority of our income is generally earned in Bermuda, which has not had a corporate income tax, the tax impact to our operations has historically been minimal. On December 27, 2023, the Bermuda CIT was enacted. As a result, we expect our profits generated on or after January 1, 2025 in Bermuda (except for profits earned by our joint ventures and managed funds) will be subject to the 15% CIT. Furthermore, we generally expect that the profits generated in Bermuda on or after January 1, 2025 by our joint ventures and managed funds, except to the extent those profits are attributable to redeemable noncontrolling interests, will also be taxed at 15% as a result of the enactment or expected enactment of provisions similar to the GloBE Rules by many of the jurisdictions in which we operate. As a result, we expect our income taxes to increase beginning in 2025.

In 2024, we recognized an income tax expense of $32.6 million, compared to an income tax benefit of $510.1 million in 2023. The income tax expense was primarily driven by income in our taxable jurisdictions, offset by a $33.7 million deferred tax benefit resulting from the merger of RenaissanceRe Europe AG and Validus Switzerland completed in the second quarter of 2024. The 2023 income tax benefit of $510.1 million was primarily driven by a net deferred tax benefit of $593.8 million in connection with the enactment of the Bermuda CIT.

At December 31, 2024, our net deferred tax asset before and after valuation allowance totaled $822.6 million and $675.5 million, respectively. Our operations in Ireland, the U.K. (except RREAG, UK Branch), Switzerland, the RREAG, US Branch, and Luxembourg have historically produced GAAP taxable losses, and we currently do not believe it is more likely than not that we will be able to recover the predominant amount of our net deferred tax assets in these jurisdictions. Accordingly, we have recorded a valuation allowance on the majority of the net deferred tax asset in these jurisdictions.

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Our effective income tax rate, which we calculate as income tax benefit (expense) divided by income (loss) before taxes, may fluctuate significantly from period to period depending on the geographic distribution of pre-tax income or loss in any given period between different jurisdictions with comparatively higher tax rates and those with comparatively lower tax rates. Generally, the preponderance of our revenue and pre-tax income or loss is generated by our domestic (i.e., Bermuda) operations, in the form of underwriting income or loss and net investment income or loss, rather than our foreign operations. However, the geographic distribution of pre-tax income or loss can vary significantly between periods for a variety of reasons, including the business mix and geographic location of the balance sheet on which net premiums are written and earned, the size and nature of net claims and claim expenses incurred, the amount and geographic location of operational expenses, net investment income and net realized and unrealized gains (losses) on investments and the amount of specific adjustments to determine the income tax basis in each of our operating jurisdictions. We expect our consolidated effective tax rate will increase in 2025 as a result of the enactment of the CIT in Bermuda and the implementation of the GloBE Rules in certain jurisdictions where we operate. In addition, it is possible we could be adversely affected by other future changes in tax laws, regulation, or enforcement, any of which could increase our effective tax rate more rapidly or steeply than we currently anticipate. In particular, jurisdictions in which we operate may incorporate the OECD’s administrative guidance on Article 9.1 of the GloBE Rules. If they were to do so, starting in 2027, a reduction in cash taxes we pay to Bermuda as a result of reversal of the Bermuda CIT deferred tax asset could be offset by an additional top-up tax in such jurisdictions. Such additional top-up taxes could increase our income tax expense and our consolidated effective tax rate in such years.

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Redeemable noncontrolling interest - DaVinci","$","627,055","","","$","545,812","","","$","81,243"],["","Redeemable noncontrolling interest - Medici","202,941","","","239,250","","","(36,309)"],["","Redeemable noncontrolling interest - Vermeer","244,560","","","239,457","","","5,103"],["","Redeemable noncontrolling interest - Fontana","15,616","","","34,476","","","(18,860)"],["","Net income (loss) attributable to redeemable noncontrolling interests","$","1,090,172","","","$","1,058,995","","","$","31,177"]]
[[/GREPCENT_TABLE]]

Our net income attributable to redeemable noncontrolling interests was $1.1 billion compared to $1.1 billion in 2023, an increase of $31.2 million. The increase was primarily driven by the following:

•DaVinci, which had higher net income in 2024 compared to 2023, primarily resulting from improved underwriting results;

•Vermeer, which had higher net income in 2024 compared to 2023, primarily resulting from improved underwriting results; partially offset by decreases in

•Medici, which had lower net income in 2024 compared to 2023, due to higher foreign exchange losses in the current period and lower net realized and unrealized gains on investments, compared to 2023; and

•Fontana, which had lower net income in 2024, compared to 2023, primarily resulting from an increase in net realized and unrealized losses on investments in 2024.

Refer to “Note 10. Noncontrolling Interests” in our “Notes to Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Financial Condition

As a Bermuda-domiciled holding company, RenaissanceRe has limited operations of its own. Its assets consist primarily of investments in subsidiaries and cash and securities in amounts which fluctuate over time. We therefore rely on dividends and distributions (and other statutorily permissible payments) from our subsidiaries, investment income and fee income to meet our liquidity requirements, which primarily include

82

making principal and interest payments on our debt and dividend payments to our preference and common shareholders.

The payment of dividends by our subsidiaries is, under certain circumstances, limited by the applicable laws and regulations in the various jurisdictions in which our subsidiaries operate. In addition, insurance laws require our insurance subsidiaries to maintain certain measures of solvency and liquidity. We believe that each of our insurance subsidiaries and branches exceeded the minimum solvency, capital and surplus requirements in their applicable jurisdictions at December 31, 2024. Certain of our subsidiaries and branches are required to file FCRs with their regulators, which provide details on solvency and financial performance. Where required, these FCRs will be posted on our website. The regulations governing our and our principal operating subsidiaries’ ability to pay dividends and to maintain certain measures of solvency and liquidity, and requirements to file FCRs are discussed in detail in “Part I, Item 1. Business, Regulation” and “Note 18. Statutory Requirements” in our “Notes to the Consolidated Financial Statements.”

Liquidity and Cash Flows

Holding Company Liquidity

RenaissanceRe’s principal uses of liquidity are: (1) common share related transactions including dividend payments to our common shareholders and common share repurchases, (2) preference share related transactions including dividend payments to our preference shareholders and preference share redemptions, (3) interest and principal payments on debt, (4) capital investments in our subsidiaries, (5) acquisition of, or investments in, new or existing companies or books of business of other companies, such as the Validus Acquisition, and (6) certain corporate and operational expenses.

We attempt to structure our organization in a way that facilitates efficient capital movements between RenaissanceRe and our operating subsidiaries and to ensure that adequate liquidity is available when required, giving consideration to applicable laws and regulations, and the domiciliary location of sources of liquidity and related obligations. For example, our internal investment structures and cash pooling arrangements among RenaissanceRe and certain of our subsidiaries help to efficiently facilitate capital and liquidity movements.

In the aggregate, our principal operating subsidiaries have historically produced sufficient cash flows to meet their expected claims payments and operational expenses and to provide dividend payments to us. In addition, our subsidiaries maintain a concentration of investments in high quality liquid securities, which management believes will provide additional liquidity for extraordinary claims payments should the need arise. In 2024, we received significant distributions of capital from many of our principal operating subsidiaries, both in the ordinary course and in connection with the integration of Validus and streamlining of our corporate structure following the Validus Acquisition. For example, we received dividends from Validus Re, Renaissance Reinsurance and RREAG, following the merger of Validus Switzerland and RREAG in June 2024 and in connection with the amalgamation of Validus Re and Renaissance Reinsurance in October 2024.

However, in some circumstances, RenaissanceRe may determine it is necessary or advisable to contribute capital to our subsidiaries, or may be contractually required to contribute capital to our subsidiaries, joint ventures or managed funds. For example, in 2024, RenaissanceRe contributed capital to RenaissanceRe Specialty U.S. to support growth in premiums. In addition, from time to time we invest in new managed joint ventures or managed funds, increase our investments in certain of our managed joint ventures or managed funds and contribute cash to investment subsidiaries, such as the launch of Fontana in 2022. Examples of our contractual requirements to make capital contributions to our subsidiaries or joint ventures or managed funds include our net worth maintenance agreements with certain operating subsidiaries, and Renaissance Reinsurance’s obligation to make a mandatory capital contribution of up to $50.0 million in the event that a loss reduces Top Layer’s capital below a specified level.

Sources of Liquidity

Historically, cash receipts from operations, consisting primarily of premiums, investment income and fee income, have provided sufficient funds to pay the losses and operational expenses incurred by our subsidiaries and to fund dividends and distributions to RenaissanceRe. Other potential sources of liquidity include borrowings under our credit facilities and issuances of securities.

83

The premiums received by our operating subsidiaries are generally received months or even years before losses are paid under the policies related to such premiums. Premiums and acquisition expenses generally are received within the first two years of inception of a contract, while operational expenses are generally paid within a year of being incurred. It generally takes much longer for net claims and claim expenses incurred to be reported and ultimately settled, requiring the establishment of reserves for claims and claim expenses and reinsurance recoverable. Therefore, the amount of net claims paid in any one year is not necessarily related to the amount of net claims and claim expenses incurred in that year, as reported in the consolidated statements of operations.

We expect that our liquidity needs for the next 12 months will be met by our cash receipts from operations. However, as a result of a combination of market conditions, turnover of our investment portfolios and changes in investment yields, and the nature of our business where a large portion of the coverages we provide can produce losses of high severity and low frequency, future cash flows from operating activities cannot be accurately predicted and may fluctuate significantly between individual quarters and years. In addition, due to the magnitude and complexity of certain large loss events, meaningful uncertainty remains regarding losses from these events and our actual ultimate net losses from these events may vary materially from preliminary estimates, which would impact our cash flows from operations.

Our “shelf” registration statement on Form S-3 under the Securities Act allows for the public offering of various types of securities, including common shares, preference shares and debt securities, which provides a source of liquidity. Because we are a “well-known seasoned issuer” as defined by the rules promulgated under the Securities Act, we are also eligible to file additional automatically effective registration statements on Form S-3 in the future for the potential offering and sale of additional debt and equity securities. From time to time, we raise capital through public offerings pursuant to our registration statements. For example, in 2023, we completed an offering of common shares and an issuance of senior notes for total net proceeds of approximately $2.1 billion to fund a portion of the cash consideration for the Validus Acquisition, to pay related costs and expenses, and for general corporate purposes.

Credit Facilities, Trusts and Other Collateral Arrangements

We also maintain various other arrangements that allow us to access liquidity and satisfy collateral requirements, including revolving credit facilities, letter of credit facilities, and regulatory trusts, as well as other types of trust and collateral arrangements. Regulatory and other requirements to post collateral to support our reinsurance obligations could impact our liquidity. For example, many jurisdictions in the U.S. do not permit insurance companies to take credit for reinsurance obtained from unlicensed or non-admitted insurers on their statutory financial statements unless security is posted, so our contracts generally require us to post a letter of credit or provide other security (such as through a multi-beneficiary reinsurance trust). However, certain of our subsidiaries qualify as certified reinsurers or reciprocal reinsurers in one or more U.S. states, which has, and may continue to, reduce the amount of collateral that we are required to post. In addition, if we were to fail to comply with certain covenants in our debt agreements, we may have to pledge additional collateral.

84

Letter of Credit and Revolving Credit Facilities

We and certain of our subsidiaries, joint ventures, and managed funds maintain secured and unsecured revolving credit facilities and letter of credit facilities that provide liquidity and allow us to satisfy certain collateral requirements. The outstanding amounts drawn under each of our significant credit facilities are set forth below:

[[GREPCENT_TABLE]]
[["","At December 31, 2024","Issued or Drawn"],["","(in thousands)"],["","Revolving Credit Facility (1)","$","\u2014"],["","Medici Revolving Credit Facility (2)","\u2014"],["","Bilateral Letter of Credit Facilities"],["","Secured","262,168"],["","Unsecured","357,443"],["","","$","619,611"]]
[[/GREPCENT_TABLE]]

(1)At December 31, 2024, no amounts were issued or drawn under this facility.

(2)RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions.

Refer to “Note 9. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” for additional information related to our significant debt and credit facilities.

Funds at Lloyd’s

As a member of Lloyd’s, the underwriting capacity, or stamp capacity, of Syndicate 1458 is required to be supported by providing a deposit, the FAL, in the form of cash, securities or letters of credit. At December 31, 2024, the FAL required to support the underwriting activities at Lloyd’s through Syndicate 1458 was £714.8 million (2023 - £730.9 million). Actual FAL posted for Syndicate 1458 at December 31, 2024 by RenaissanceRe Corporate Capital (UK) Limited was $952.3 million (2023 - $935.8 million), supported by a $952.3 million deposit of cash and fixed maturity securities (2023 - $710.8 million deposit of cash and fixed maturity securities and $225.0 million letter of credit).

Multi-Beneficiary Reinsurance Trusts, Multi-Beneficiary Reduced Collateral Reinsurance Trusts

Renaissance Reinsurance, DaVinci Reinsurance, and RREAG use multi-beneficiary reinsurance trusts and/or multi-beneficiary reduced collateral reinsurance trusts to collateralize reinsurance liabilities. As of December 31, 2024, all of these trusts were funded in accordance with the relevant regulatory thresholds. However, assets held in these trusts have in the past, and may in the future, exceed the amount required under U.S. state regulations.

Refer to “Note 18. Statutory Requirements” in our “Notes to the Consolidated Financial Statements” for additional information on our multi-beneficiary reinsurance trusts and multi-beneficiary reduced collateral reinsurance trusts.

Contractual Obligations

In assessing our liquidity requirements and cash needs, we also consider contractual obligations to which we are a party. In certain circumstances, our contractual obligations may be accelerated due to defaults under the agreements governing those obligations (including pursuant to cross-default provisions in such agreements) or in connection with certain changes in control of the Company, for example. In addition, in certain circumstances, in the event of a default these obligations may bear an increased interest rate or be subject to penalties.

85

The table below shows certain of our current and long-term contractual obligations:

[[GREPCENT_TABLE]]
[["","At December 31, 2024","Total","","Less Than 1 Year","","1-3 Years","","3-5 Years","","More Than 5 Years"],["","(in thousands)"],["","Long term debt obligations (1)"],["","5.750% Senior Notes due 2033","$","1,113,568","","","$","43,125","","","$","86,250","","","$","86,250","","","$","897,943"],["","3.600% Senior Notes due 2029","461,800","","","14,400","","","28,800","","","418,600","","","\u2014"],["","3.450% Senior Notes due 2027","325,875","","","10,350","","","315,525","","","\u2014","","","\u2014"],["","3.700% Senior Notes due 2025","302,775","","","302,775","","","\u2014","","","\u2014","","","\u2014"],["","4.750% Senior Notes due 2025 (DaVinci)","152,375","","","152,375","","","\u2014","","","\u2014","","","\u2014"],["","Total long term debt obligations","2,356,393","","","523,025","","","430,575","","","504,850","","","897,943"],["","Investment commitments (2)","1,953,175","","","1,953,175","","","\u2014","","","\u2014","","","\u2014"],["","Operating lease obligations","150,740","","","15,657","","","32,900","","","31,527","","","70,656"],["","Capital lease obligations","10,129","","","2,661","","","5,322","","","2,146","","","\u2014"],["","Payable for investments purchased","150,721","","","150,721","","","\u2014","","","\u2014","","","\u2014"],["","Reserve for claims and claim expenses (3)","21,303,491","","","5,062,987","","","7,135,688","","","4,036,162","","","5,068,654"],["","Total contractual obligations","$","25,924,649","","","$","7,708,226","","","$","7,604,485","","","$","4,574,685","","","$","6,037,253"]]
[[/GREPCENT_TABLE]]

(1)Includes contractual interest payments.

(2)The investment commitments do not have a defined contractual commitment date and we have therefore included them in the less than one year category.

(3)The amount and timing of the cash flows associated with our policy liabilities are highly uncertain. Refer to “Note 8. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for more information on our estimate of claims and claim expense reserves.

Cash Flows

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024","","2023"],["","(in thousands)"],["","Net cash provided by (used in) operating activities","$","4,164,822","","","$","1,911,634"],["","Net cash provided by (used in) investing activities","(3,060,856)","","","(3,822,636)"],["","Net cash provided by (used in) financing activities","(1,287,515)","","","2,588,639"],["","Effect of exchange rate changes on foreign currency cash","(17,365)","","","5,542"],["","Net increase (decrease) in cash and cash equivalents","(200,914)","","","683,179"],["","Cash and cash equivalents, beginning of period","1,877,518","","","1,194,339"],["","Cash and cash equivalents, end of period","$","1,676,604","","","$","1,877,518"]]
[[/GREPCENT_TABLE]]

2024

During 2024, our cash and cash equivalents decreased by $200.9 million, to $1.7 billion at December 31, 2024, compared to $1.9 billion at December 31, 2023.

Cash flows provided by operating activities. Cash flows provided by operating activities during 2024 were $4.2 billion, compared to $1.9 billion during 2023. Cash flows provided by operating activities during 2024 were primarily the result of certain adjustments to reconcile our net income of $3.0 billion to net cash provided by operating activities, including:

•a decrease in reinsurance recoverable of $862.9 million due to prior year favorable development across the 2017 through 2022 accident years, in addition to paid recoveries;

•an increase in reserve for claims and claim expenses of $816.6 million, primarily resulting from an increase in reserves in our Casualty and Specialty segment, largely driven by an increase in earned

86

premiums due to the renewal of business acquired in the Validus Acquisition and organic growth, resulting in additional attritional reserves, partially offset by a decrease in reserves in our Property segment primarily due to paid losses and prior year favorable development; partially offset by

•a decrease in reinsurance balances payable of $381.8 million, principally driven by the redemption of capital from Upsilon RFO and the timing of payments related to underwriting activity

Cash flows used in investing activities. During 2024, our cash flows used in investing activities were $3.1 billion, principally reflecting net purchases of fixed maturity investments trading of $2.8 billion and other investments of $438.2 million, partially offset by cash flows from net sales of short term investments of $174.5 million. The net purchases of fixed maturity investments trading and other investments was primarily funded by cash flows provided by operating activities, as described above.

Cash flows used in financing activities. Our cash flows used in financing activities in 2024 were $1.3 billion, and were principally the result of:

•net outflows of $405.8 million, primarily related to net third-party redeemable noncontrolling interest share transactions in DaVinci, Medici and Vermeer;

•common share repurchases of $666.9 million; and

•repayment of debt of $150.0 million related to the Medici Revolving Credit Facility.

2023

During 2023, our cash and cash equivalents increased by $683.2 million, to $1.9 billion at December 31, 2023, compared to $1.2 billion at December 31, 2022.

Cash flows provided by operating activities. Cash flows provided by operating activities during 2023 were $1.9 billion, compared to $1.6 billion during 2022. Cash flows provided by operating activities during 2023 were primarily the result of certain adjustments to reconcile our net income of $3.6 billion to net cash provided by operating activities, which exclude the acquired net assets of Validus, including:

•a decrease in reinsurance balances payable of $1.0 billion, principally driven by the redemption of capital from Upsilon RFO and the timing of payments related to underwriting activity;

•net realized and unrealized gains on investments of $482.8 million, primarily driven by unrealized gains in our fixed maturity investments due to movements in interest rates;

•a decrease in unearned premiums of $227.0 million due to a decrease in gross premiums written across both our Property and Casualty and Specialty segments;

•an increase in premiums receivable of $126.9 million due to the timing of receipts and an increase in our gross premiums written; partially offset by

•a decrease in reinsurance recoverable of $663.9 million due to the decrease in current year large losses as compared to prior year, as well as an increase in collected recoveries and higher level of prior year favorable development; and

•an increase in prepaid reinsurance premiums of $223.4 million due to the timing of payments.

Cash flows used in investing activities. During 2023, our cash flows used in investing activities were $3.8 billion, principally reflecting net purchases of fixed maturity investments trading of $3.0 billion and other investments of $801.8 million, partially offset by cash flows from net sales of short term investments of $1.8 billion and equity investments of $564.3 million. The net purchases of fixed maturity investments trading was primarily funded by cash flows provided by operating activities, as described above, and cash flows provided by the capital raised as part of our financing plan for the Validus Acquisition, as described below. The net purchase of other investments during 2023 was primarily driven by net purchases of catastrophe bonds in Medici, which were funded by new capital contributions. In addition, we completed our acquisition of Validus on November 1, 2023, resulting in a net cash outflow of $2.4 billion. Refer to “Note 3. Acquisition of Validus” in our “Notes to the Consolidated Financial Statements” for additional information related to the acquisition of Validus.

87

Cash flows provided by financing activities. Our cash flows provided by financing activities in 2023 were $2.6 billion, and were principally the result of:

•the issuance of 7,245,000 of our common shares in an underwritten public offering at a public offering price of $192.00 per share. The total net proceeds from the offering were $1,351.6 million;

•the issuance of $750.0 million of 5.750% Senior Notes due June 5, 2033, with net proceeds from the offering of $740.6 million;

•net inflows of $582.5 million primarily related to net third-party redeemable noncontrolling interest share transactions in Medici and DaVinci;

•net inflows of $75.0 million from the drawdown of the Medici Revolving Credit Facility; partially offset by

•dividends paid on our common and preference shares of $75.1 million and $35.4 million, respectively; and

•repayment of debt of $30.0 million related to the Medici Revolving Credit Facility.

Capital Resources

We monitor our capital adequacy on a regular basis and seek to adjust our capital according to the needs of our business. In particular, we require capital sufficient to meet or exceed the capital adequacy ratios established by rating agencies for maintenance of appropriate financial strength ratings, the capital adequacy tests performed by regulatory authorities and the capital requirements under our credit facilities. From time to time, rating agencies may make changes in their capital models and rating methodologies, which could increase the amount of capital required to support our ratings. We may seek to raise additional capital or return capital to our shareholders through common share repurchases and cash dividends (or a combination of such methods). In the normal course of our operations, we may from time to time evaluate additional share or debt issuances given prevailing market conditions and capital management strategies, including for our operating subsidiaries, joint ventures and managed funds. In addition, as noted above, we enter into agreements with financial institutions to obtain letter of credit facilities for the benefit of our operating subsidiaries and certain of our joint ventures and managed funds in their reinsurance and insurance business.

88

Our total shareholders’ equity attributable to RenaissanceRe and total debt was as follows:

[[GREPCENT_TABLE]]
[["","At December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Common shareholders\u2019 equity","$","9,824,012","","","$","8,704,958","","","$","1,119,054"],["","Preference shares","750,000","","","750,000","","","\u2014"],["","Total shareholders\u2019 equity attributable to RenaissanceRe","$","10,574,012","","","$","9,454,958","","","$","1,119,054"],["","5.750% Senior Notes due 2033","$","742,068","","","$","741,124","","","$","944"],["","3.600% Senior Notes due 2029","396,051","","","395,137","","","914"],["","3.450% Senior Notes due 2027","298,765","","","298,270","","","495"],["","3.700% Senior Notes due 2025","299,908","","","299,537","","","371"],["","4.750% Senior Notes due 2025 (DaVinci) (1)","149,897","","","149,587","","","310"],["","Total senior notes","1,886,689","","","1,883,655","","","3,034"],["","Medici Revolving Credit Facility (2)","\u2014","","","75,000","","","(75,000)"],["","Total debt","$","1,886,689","","","$","1,958,655","","","$","(71,966)"]]
[[/GREPCENT_TABLE]]

(1)RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinci. Because RenaissanceRe controls a majority of DaVinci’s issued voting shares, the consolidated financial statements of DaVinci are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinci and RenaissanceRe’s financial exposure to DaVinci is limited to its investment in DaVinci’s shares and counterparty credit risk arising from reinsurance transactions.

(2)RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s issued voting shares, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions.

Our total shareholders’ equity attributable to RenaissanceRe increased $1.1 billion during 2024 principally as a result of:

•our comprehensive income attributable to RenaissanceRe of $1.9 billion; partially offset by

•$80.8 million and $35.4 million of dividends on our common and preference shares, respectively.

For additional information related to the terms of our debt and significant credit facilities, see “Note 9. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements.” See “Note 12. Shareholders’ Equity” in our “Notes to the Consolidated Financial Statements” for additional information related to our common and preference shares.

Reserve for Claims and Claim Expenses

We believe the most significant accounting judgment made by management is our estimate of claims and claim expense reserves. Claims and claim expense reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts we sell. Our actual net claims and claim expenses paid will differ, perhaps materially, from the estimates reflected in our financial statements, which may adversely impact our financial condition, liquidity and capital resources.

Refer to “Note 8. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for more information on the risks we insure and reinsure, the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, prior year development of the reserve for claims and claim expenses, analysis of our incurred and paid claims development and claims duration information for each of our Property and Casualty and Specialty segments. In addition, refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Summary of Critical Accounting Estimates, Claims and Claim Expense Reserves” for more information on the reserving techniques, assumptions and processes we follow to estimate our claims and claim expense reserves, our actual results versus our initial estimates of our claims reserves, and sensitivity analysis for each of our Property and Casualty and Specialty segments.

89

Investments

The table below shows our invested assets:

[[GREPCENT_TABLE]]
[["","At December 31,","2024","","2023","","Change"],["","(in thousands, except percentages)"],["","U.S. treasuries","$","11,001,893","","","33.7","%","","$","10,060,203","","","34.4","%","","$","941,690"],["","Corporate (1)","7,862,423","","","24.1","%","","6,499,075","","","22.2","%","","1,363,348"],["","Residential mortgage-backed","1,707,056","","","5.2","%","","1,420,362","","","4.9","%","","286,694"],["","Asset-backed","1,422,393","","","4.4","%","","1,491,695","","","5.0","%","","(69,302)"],["","Agencies","623,489","","","1.9","%","","489,117","","","1.7","%","","134,372"],["","Non-U.S. government","618,809","","","1.9","%","","483,576","","","1.7","%","","135,233"],["","Commercial mortgage-backed","326,451","","","1.0","%","","433,080","","","1.5","%","","(106,629)"],["","Total fixed maturity investments, at fair value","23,562,514","","","72.2","%","","20,877,108","","","71.4","%","","2,685,406"],["","Short term investments, at fair value","4,531,655","","","13.9","%","","4,604,079","","","15.8","%","","(72,424)"],["","Equity investments, at fair value","117,756","","","0.4","%","","106,766","","","0.4","%","","10,990"],["","Fund investments","2,128,499","","","6.5","%","","1,415,804","","","4.9","%","","712,695"],["","Catastrophe bonds","1,984,396","","","6.1","%","","1,942,199","","","6.7","%","","42,197"],["","Direct private equity investments","211,866","","","0.6","%","","59,905","","","0.2","%","","151,961"],["","Term loans","\u2014","","","\u2014","%","","97,658","","","0.3","%","","(97,658)"],["","Total other investments, at fair value","4,324,761","","","13.2","%","","3,515,566","","","12.1","%","","809,195"],["","Investments in other ventures, under equity method","102,770","","","0.3","%","","112,624","","","0.3","%","","(9,854)"],["","Total investments","$","32,639,456","","","100.0","%","","$","29,216,143","","","100.0","%","","$","3,423,313"]]
[[/GREPCENT_TABLE]]

(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. Notwithstanding the foregoing, our investments are subject to market-wide risks and fluctuations, as well as to risks inherent in particular securities. For additional information regarding our investments and the fair value measurement of our investments refer to “Note 5. Investments” and “Note 6. Fair Value Measurements” in our “Notes to the Consolidated Financial Statements.”

As the reinsurance coverages we sell include substantial protection for damages resulting from natural and man-made catastrophes, as well as for potentially large casualty and specialty exposures, we expect, from time to time, to become liable for substantial claim payments on short notice. Accordingly, our investment portfolio as a whole is structured to seek to preserve capital and provide a high level of liquidity, which means that the large majority of our investments are highly rated fixed income securities, including U.S. treasuries, agencies, highly rated sovereign and supranational securities, high-grade corporate securities and mortgage-backed and asset-backed securities. We also have an allocation to publicly traded equities reflected on our consolidated balance sheet as equity investments and an allocation to other investments (including catastrophe bonds, fund investments, term loans and direct private equity investments).

90

Weighted Average Effective Yield and Credit Rating

The following table summarizes the composition of our investment portfolio, including the amortized cost, fair value, credit ratings and effective yields.

[[GREPCENT_TABLE]]
[["","(in thousands, except percentages)","","","","","Credit Rating (1)"],["","December 31, 2024","","","Fair Value","","","","AAA","","AA","","A","","BBB","","Non- Investment Grade","","Not Rated","","Investments Not Subject to Credit Ratings"],["","Fixed maturity investments trading, at fair value"],["","U.S. treasuries","","","$","11,001,893","","","","","$","\u2014","","","$","11,001,893","","","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","\u2014"],["","Corporate (2)","","","7,862,423","","","","","299,758","","","391,900","","","2,902,013","","","2,902,395","","","1,348,823","","","17,534","","","\u2014"],["","Residential mortgage-backed","","","1,707,056","","","","","136,306","","","1,432,615","","","516","","","7,179","","","73,349","","","57,091","","","\u2014"],["","Asset-backed","","","1,422,393","","","","","1,204,062","","","155,254","","","44,893","","","17,282","","","\u2014","","","902","","","\u2014"],["","Agencies","","","623,489","","","","","\u2014","","","623,489","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014"],["","Non-U.S. government","","","618,809","","","","","397,403","","","197,924","","","20,973","","","2,509","","","\u2014","","","\u2014","","","\u2014"],["","Commercial mortgage-backed","","","326,451","","","","","264,052","","","58,592","","","1,654","","","\u2014","","","829","","","1,324","","","\u2014"],["","Total fixed maturity investments trading, at fair value","","","23,562,514","","","","","2,301,581","","","13,861,667","","","2,970,049","","","2,929,365","","","1,423,001","","","76,851","","","\u2014"],["","Short term investments, at fair value","","","4,531,655","","","","","2,661,135","","","1,862,362","","","100","","","3,247","","","4,257","","","554","","","\u2014"],["","Equity investments, at fair value","","","117,756","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","117,756"],["","Other investments, at fair value"],["","Catastrophe bonds","","","1,984,396","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,984,396","","","\u2014","","","\u2014"],["","Fund investments:"],["","Private credit funds","","","1,181,146","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,181,146"],["","Private equity funds","","","609,105","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","609,105"],["","Hedge funds","","","338,248","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","338,248"],["","Direct private equity investments","","","211,866","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","211,866"],["","Total other investments, at fair value","","","4,324,761","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","1,984,396","","","\u2014","","","2,340,365"],["","Investments in other ventures, under equity method","","","102,770","","","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014","","","102,770"],["","Total investments","","","$","32,639,456","","","","","$","4,962,716","","","$","15,724,029","","","$","2,970,149","","","$","2,932,612","","","$","3,411,654","","","$","77,405","","","$","2,560,891"],["","","","","100.0","%","","","","15.2","%","","48.2","%","","9.1","%","","9.0","%","","10.5","%","","0.2","%","","7.8","%"],["","","","","","","","","","","","","9.1","%"]]
[[/GREPCENT_TABLE]]

(1)The credit ratings included in this table are those assigned by Standard & Poor’s Corporation (“S&P”). When ratings provided by S&P were not available, ratings from other recognized rating agencies were used. We have grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A.

(2)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

Fixed Maturity Investments and Short Term Investments

At December 31, 2024, our fixed maturity investments and short term investment portfolio had a weighted average credit quality rating of AA (2023 – AA) and a weighted average effective yield of 4.9% (2023 – 5.0%). At December 31, 2024, our non-investment grade and not-rated fixed maturity investments totaled $1.5 billion or 6.4% of our fixed maturity investments (2023 - $1.3 billion or 6.1%, respectively). In addition, within our other investments category we have funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities. At December 31, 2024, the funds that invest in non-investment grade and not-rated fixed income securities and non-investment grade cat-linked securities totaled $3.2 billion (2023 – $2.9 billion).

At December 31, 2024, we had $4.5 billion of short term investments (2023 – $4.6 billion). Short term investments are managed as part of our investment portfolio and have a maturity of one year or less when purchased. Short term investments are carried at fair value.

The duration of our fixed maturity investments and short term investments at December 31, 2024 was 3.1 years (2023 - 2.9 years). From time to time, we may reevaluate the duration of our portfolio in light of the duration of our liabilities and market conditions.

91

The value of our fixed maturity investments will fluctuate with changes in the interest rate environment and when changes occur in economic conditions or the investment markets. Additionally, our differing asset classes expose us to other risks which could cause a reduction in the value of our investments.

Equity Investments

The following table summarizes the fair value of equity investments:

[[GREPCENT_TABLE]]
[["","At December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Financials","$","116,400","","","$","106,542","","","$","9,858"],["","Basic materials","595","","","\u2014","","","595"],["","Industrial, utilities and energy","312","","","\u2014","","","312"],["","Communications and technology","263","","","12","","","251"],["","Consumer","154","","","212","","","(58)"],["","Healthcare","32","","","\u2014","","","32"],["","Total equity investments","$","117,756","","","$","106,766","","","$","10,990"]]
[[/GREPCENT_TABLE]]

A portion of our investments included in equity investments is managed pursuant to diversified public equity securities mandates with third-party investment managers. In addition, our equity investments include more concentrated public equity positions that we invest in through our strategic investment portfolio. These investments are subject to a variety of risks including: company performance, the availability of strategic investment opportunities, and macro-economic, industry, and systemic risks of the equity markets overall. Consequently, the carrying value of our investment portfolio will vary over time as the value or size of our portfolio of strategic investments in marketable equity securities fluctuates. It is possible we will increase our equity allocation in the future, and it could, from time to time, have a material effect on our financial results.

Other Investments

The table below shows our portfolio of other investments: 

[[GREPCENT_TABLE]]
[["","At December 31,","2024","","2023","","Change"],["","(in thousands)"],["","Fund investments","$","2,128,499","","","$","1,415,804","","","$","712,695"],["","Catastrophe bonds","1,984,396","","","1,942,199","","","42,197"],["","Direct private equity investments","211,866","","","59,905","","","151,961"],["","Term loans","\u2014","","","97,658","","","(97,658)"],["","Total other investments","$","4,324,761","","","$","3,515,566","","","$","809,195"]]
[[/GREPCENT_TABLE]]

We account for our other investments at fair value in accordance with FASB ASC Topic 825, Financial Instruments. The fair value of our fund investments, which include private equity funds, private credit funds and hedge funds, is recorded on our consolidated balance sheets in other investments, and is generally established on the basis of the net asset value per share (or its equivalent), determined by the managers of these investments in accordance with the applicable governing documents. Many of our fund investments are subject to restrictions on redemptions and sales which limit our ability to liquidate these investments in the short term.

Our fund managers and their fund administrators are generally unable to provide final fund valuations as of our current reporting date. We typically experience a reporting lag to receive a final net asset value report of one month for our hedge funds and three months for both private equity funds and private credit funds, although we have occasionally experienced delays of up to six months, particularly at year end. In circumstances where there is a reporting lag, we estimate the fair value of these funds by starting with the prior month or quarter-end fund valuation, adjusting these valuations for actual capital calls, redemptions or distributions, as well as the impact of changes in foreign currency exchange rates, and then estimating the return for the current period. In circumstances in which we estimate the return for the current period, all information available to us is utilized. This principally includes using preliminary estimates reported to us by

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our fund managers, where available, and estimating returns based on the performance of broad market indices, or other valuation methods. Actual final fund valuations may differ, perhaps materially, from our estimates and these differences are recorded in our consolidated statements of operations in the period in which they are reported to us as a change in estimate. Due to the lag in reporting discussed above, we recorded a net loss of $9.7 million for 2024 (2023 - net loss of $3.0 million), representing the difference between our estimate recorded on December 31, 2023 (2023 - December 31, 2022) and the actual amount reported in the final net asset values provided by our fund managers.

Our other investments also include investments in catastrophe bonds, direct private equity investments and term loans which are recorded at fair value. Our estimate of the fair value of catastrophe bonds is based on broker or underwriter bid indications. The fair value of direct private equity investments is based on quoted prices for similar assets, where available, or on the use of internal valuation models, Refer to “Note 6. Fair Value Measurements” in our “Notes to the Consolidated Financial Statements” for additional information regarding the fair value measurement of our investments.

We have committed capital to direct private equity investments, fund investments, term loans and investments in other ventures of $4.5 billion, of which $2.5 billion has been contributed at December 31, 2024 (2023 - $3.6 billion and $2.0 billion, respectively). Our remaining commitments to these investments at December 31, 2024 totaled $2.0 billion (2023 - $1.6 billion). In the future, we may enter into additional commitments in respect of these investments or individual portfolio company investment opportunities.

Investments in Other Ventures, under Equity Method

The table below shows our investments in other ventures, under equity method: 

[[GREPCENT_TABLE]]
[["","At December 31,","2024","","2023"],["","(in thousands, except percentages)","Capital Invested","","Ownership %","","Carrying Value","","Capital Invested","","Ownership %","","Carrying Value"],["","Investments in other ventures, under equity method","$","205,373","","","0.1% - 50.0%","","$","102,770","","","$","214,484","","","0.1% - 50.0%","","$","112,624"]]
[[/GREPCENT_TABLE]]

The realized value we ultimately attain for our investments in other ventures, under equity method will likely differ from the carrying value, perhaps materially.

Ratings

Financial strength ratings are important to the competitive position of reinsurance and insurance companies. We have received high financial strength ratings from A.M. Best, S&P, Moody’s and Fitch. These ratings represent independent opinions of an insurer’s financial strength, operating performance and ability to meet policyholder obligations, and are not an evaluation directed toward the protection of investors or a recommendation to buy, sell or hold any of our securities. Certain of our entities and the senior notes and preference shares issued by them also have issuer credit ratings. Rating organizations continually review the financial positions of our principal operating subsidiaries and joint ventures and ratings may be revised or revoked by the agencies which issue them. Additionally, rating organizations may change their capital models and rating methodologies, which could have a material impact on our ratings and business.

In addition, S&P and A.M. Best assess and score companies’ ERM practices, which is an opinion on the many critical dimensions of risk that determine overall creditworthiness. RenaissanceRe has been assigned an ERM score of “Very Strong” from each of these agencies, which is the highest ERM score assigned.

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The financial strength ratings of our principal operating subsidiaries and joint ventures and the ERM score of RenaissanceRe as of February 7, 2025 are presented below.

[[GREPCENT_TABLE]]
[["","","A.M. Best (1)","","S&P (2)","","Moody\u2019s (3)","","Fitch (4)"],["","Renaissance Reinsurance Ltd.","A+","","A+","","A1","","A+"],["","DaVinci Reinsurance Ltd.","A","","A+","","A2","","\u2014"],["","Fontana Reinsurance Ltd.","A","","\u2014","","\u2014","","\u2014"],["","Fontana Reinsurance U.S. Ltd.","A","","\u2014","","\u2014","","\u2014"],["","Renaissance Reinsurance of Europe DAC","A+","","A+","","\u2014","","\u2014"],["","Renaissance Reinsurance U.S. Inc.","A+","","A+","","\u2014","","\u2014"],["","RenaissanceRe Europe AG","A+","","A+","","\u2014","","\u2014"],["","RenaissanceRe Specialty U.S. Ltd.","A+","","A+","","\u2014","","\u2014"],["","Top Layer Reinsurance Ltd.","A+","","AA","","\u2014","","\u2014"],["","Vermeer Reinsurance Ltd.","A","","\u2014","","\u2014","","\u2014"],["","RenaissanceRe Syndicate 1458","\u2014","","\u2014","","\u2014","","\u2014"],["","Lloyd\u2019s Overall Market Rating","A+","","AA-","","\u2014","","AA-"],["","RenaissanceRe ERM Score","Very Strong","","Very Strong","","\u2014","","\u2014"]]
[[/GREPCENT_TABLE]]

(1)    The A.M. Best ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. RenaissanceRe has been assigned a “Very Strong” ERM score by A.M. Best.

(2)    The S&P ratings for our principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. RenaissanceRe has been assigned a “Very Strong” ERM score by S&P.

(3)    The Moody’s ratings represent the insurer’s financial strength rating.

(4)    The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents Syndicate 1458’s financial strength rating.

A.M. Best

The outlook for all of our A.M. Best ratings is stable. “A+” is the second highest designation of A.M. Best’s rating levels. “A+” rated insurance companies are defined as “Superior” companies and are considered by A.M. Best to have a very strong ability to meet their obligations to policyholders. “A” is the third highest designation assigned by A.M. Best, representing A.M. Best’s opinion that the insurer has an “Excellent” ability to meet its ongoing obligations to policyholders.

S&P

The outlook for all of our S&P ratings is stable. The “A” range (“A+,” “A,” “A-”), which is the third highest rating assigned by S&P, indicates that S&P believes the insurers have strong capacity to meet their respective financial commitments but they are somewhat more susceptible to adverse effects or changes in circumstances and economic conditions than insurers rated higher.

Moody’s

The outlook for all of our Moody’s ratings is stable. Moody’s Insurance Financial Strength Ratings represent its opinions of the ability of insurance companies to pay punctually policyholder claims and obligations and senior unsecured debt instruments. Moody’s believes that insurance companies rated “A1” and “A2” offer good financial security.

Fitch

The outlook for all of our Fitch ratings is stable. Fitch believes that insurance companies rated “A+” have “Strong” capacity to meet policyholders and contract obligations on a timely basis with a low expectation of ceased or interrupted payments. Insurers rated “AA-” by Fitch are believed to have a very low expectation of ceased or interrupted payments and very strong capital to meet policyholder obligations.

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Lloyd’s Overall Market Rating

A.M. Best, S&P and Fitch have each assigned a financial strength rating to the Lloyd’s overall market. The financial risks to policyholders of syndicates within the Lloyd’s market are partially mutualized through the Lloyd’s Central Fund, to which all underwriting members contribute. Because of the presence of the Lloyd’s Central Fund, and the current legal and regulatory structure of the Lloyd’s market, financial strength ratings on individual syndicates would not be particularly meaningful and in any event would not be lower than the financial strength rating of the Lloyd’s overall market.

SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

RenaissanceRe Finance, a 100% owned subsidiary of RenaissanceRe, is the issuer of certain 3.700% Senior Notes due 2025 and 3.450% Senior Notes due 2027, each of which are fully and unconditionally guaranteed by RenaissanceRe. The guarantees are senior unsecured obligations of RenaissanceRe and rank equally in right of payment with all other existing and future unsecured and unsubordinated indebtedness of RenaissanceRe which may be outstanding from time to time. Each series of notes contain various covenants, including limitations on mergers and consolidations, and restrictions as to the disposition of, and the placing of liens on, stock of designated subsidiaries. For additional information related to the terms of our outstanding debt securities, see “Note 9. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements.”

The following tables present supplemental summarized financial information for RenaissanceRe and RenaissanceRe Finance, collectively the “Obligor Group.” Intercompany transactions among the members of the Obligor Group have been eliminated. The financial information of non-obligor subsidiaries has been excluded from the summarized financial information. In addition, assets as detailed in the table below exclude investments in subsidiaries for the Obligor Group. Significant intercompany transactions and receivable/payable balances between the Obligor Group and non-obligor subsidiaries are presented separately in the summarized financial information:

Summarized Balance Sheets

[[GREPCENT_TABLE]]
[["","At December 31,","2024"],["","(in thousands)"],["","Assets"],["","Receivables due from non-obligor subsidiaries","$","2,216,081"],["","Other current assets","435,661"],["","Total current assets","$","2,651,742"],["","Goodwill and other intangible assets","$","98,662"],["","Loan receivable from non-obligor subsidiaries","646,830"],["","Other noncurrent assets","14,820"],["","Total noncurrent assets","$","760,312"],["","Liabilities"],["","Payables due to non-obligor subsidiaries","$","17,804"],["","Other current liabilities","118,442"],["","Total current liabilities","$","136,246"],["","Loan payable to non-obligor subsidiaries","$","205,255"],["","Other noncurrent liabilities","1,839,502"],["","Total noncurrent liabilities","$","2,044,757"]]
[[/GREPCENT_TABLE]]

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Summarized Statement of Operations

[[GREPCENT_TABLE]]
[["","Year ended December 31,","2024"],["","(in thousands)"],["","Revenues"],["","Intercompany revenue with non-obligor subsidiaries","$","120,917"],["","Other revenue","23,006"],["","Total revenues","143,923"],["","Expenses"],["","Intercompany expense with non-obligor subsidiaries","68,452"],["","Other expense","154,782"],["","Total expenses","223,234"],["","Income tax benefit (expense)","(13,464)"],["","Net income (loss)","(92,775)"],["","Dividends on RenaissanceRe preference shares","(35,375)"],["","Net income (loss) attributable to Obligor Group","$","(128,150)"]]
[[/GREPCENT_TABLE]]

CURRENT OUTLOOK

Over the last 10 years, we have made key strategic decisions to build the capabilities and scale that we believe will allow us to generate superior returns in an evolving marketplace. We have diversified our sources of capital through various owned and managed balance sheets as well as equity, debt and insurance-linked securities markets. We believe that the prior planning initiatives we implemented provide the flexibility to manage large loss events and efficiently distribute capital across balance sheets. We are unique among our peers in that we have both owned and managed, and rated and fronted, vehicles across the risks that we write. Our three drivers of profit put us in a differentiated position to absorb losses while still providing efficient capacity to our customers and producing strong returns for our shareholders. This has afforded us significant flexibility to react when the world changes.

In 2023, we accomplished several strategic milestones, including (i) achieving a step change in reinsurance pricing, and (ii) completing the Validus Acquisition. Over the course of 2024, we built upon these accomplishments, and successfully integrated the Validus team and entities into our operations; retained substantially all of the Validus portfolio that we sought; generated capital efficiencies; and accelerated our strategy towards our vision of being the best underwriter.

We believe that we are in a strong capital position, even after recent catastrophe losses. Our capital position, which has been enhanced by the liquidity created by the integration of Validus, provides us with the flexibility and opportunity to deploy capital into the business while actively repurchasing shares when at attractive valuations. When possible, our preference is to deploy any excess capital into profitable business opportunities before returning excess capital to shareholders.

Reinsurance Market Trends and Developments

We believe we have created significant opportunities to source attractive risk in the lines of business that we write, and that such opportunities will result in superior returns for our shareholders. Shifts in the reinsurance market environment resulted in an increase in rates across certain lines of business over the course of 2024. After successfully integrating the Validus portfolio, we remain focused on serving our customers and deploying our capacity at our increased scale.

At the January 1, 2025 renewals, we saw increased competition, but we were able to achieve targeted signings across property, casualty and specialty classes of business. We communicated our risk appetite to clients in advance of the renewals and then followed through with a high level of consistency. We constructed an attractive portfolio that we believe will provide diversified earnings across our three drivers of profit. Looking forward to 2025, we believe that demand will increase in certain lines of business and anticipate being able to underwrite this demand.

We are uniquely positioned to write a variety of risks, leveraging the enhancements we have made over the last several years to our risk and capital management technology and underwriting expertise to cover

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additional lines of business. In particular, we have invested heavily to understand the influence of climate change on the weather and its impact on the risks that we take. We believe that our RenaissanceRe Risk Sciences team gives us an advantage in properly reflecting the evolving phenomenon of climate change in our models as compared to commercially available models.

Our strategy focuses on delivering a value proposition composed of leadership, expertise and partnership, through our operation as an integrated system of three competitive advantages: superior risk selection, superior customer relationships and superior capital management. We leverage our strengths in risk selection and capital management to build portfolios designed to be resilient against a spectrum of tail-risk scenarios, including elevated hurricane seasons. This allows us to price our products accordingly and to maintain our position as a consistent incumbent for our customers.

We plan to continue to seek to take advantage of additional available opportunities and think that the strategic decisions we have made in prior periods have laid the foundation for these initiatives. Our clients value our ability to be a long-term partner who brings access to multiple forms of capital and innovative, large-scale solutions.

General Economic Conditions

We think that the stresses in the global economy will continue and that this may result in increased market volatility. Global events and geopolitical instability have contributed to widespread economic inflation over the past few years compared to recent historical norms. We consider the anticipated effects of inflation, including social, economic, and event-driven, in our loss models, on our investment portfolio, and generally in the running of our business, and actively monitor trends in these areas.

Some central banks have begun to cut interest rates, which could act as a potential supporting force for some of these inflationary pressures, if they have cut rates too soon. The effects of interest rate trends on our reinsurance and insurance business could be magnified for longer-tail business lines that are more inflation-sensitive, particularly in our Casualty and Specialty segment, and in our other property class of business within our Property segment.

The risk of a global recession is a continuing concern. However, we think that our business model is well positioned to be less sensitive to an inflationary or recessionary environment. Notwithstanding the many uncertainties and challenges that lie ahead, we believe that our track record of responding to industry events, differentiated risk management and client service capabilities, coupled with access to diverse sources of both capital and risk position us favorably in the current environment.

Tax Updates

On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023, which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime, and results in a deferred tax benefit for the Company. Pursuant to this legislation, the Company recorded a net deferred tax asset in the fourth quarter of 2023, expected to be utilized predominantly over a 10-year period. The Company expects to incur and pay increased taxes in Bermuda beginning in 2025. On January 15, 2025, the OECD issued administrative guidance, which, if incorporated into the laws of the jurisdictions in which we operate, could cause additional top-up taxes to the extent the net deferred tax asset that we established upon enactment of the CIT in 2023 pursuant to the economic transition adjustment is utilized after 2026. We continue to monitor potential impacts from changes to global tax regimes, but believe that the flexible global operating model that we have utilized will continue to prove resilient.

Three Drivers of Profit

We had strong overall performance in 2024, with solid contributions from each of our three drivers of profit. This performance reflected our strategy of generating diversified and sustainable earnings streams for our business across underwriting income, fee income and investment income. Having three distinct sources of income makes us more resilient to catastrophe activity and we believe this resilience will reward our shareholders with superior returns. We believe that the momentum across our three drivers of profit will continue.

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Underwriting Income

Through disciplined underwriting, we aim to manage the cycle and allocate our capital to the business that will generate the best returns. Portfolio construction is a continuous process, and we believe that we have constructed a large and profitable underwriting portfolio that has been bolstered by our ability to participate broadly across our clients’ portfolios. We aim to be a provider of first choice and a trusted partner to our customers to help them manage their risk across portfolios and market cycles.

We believe that each of our reportable segments have different risk and volatility profiles that contribute in distinct and important ways to our three drivers of profit, and in particular our underwriting income. The Property segment is inherently more volatile, but also provides meaningful underwriting income in lower catastrophe quarters as well as strong fee income from third-party capital. The Casualty and Specialty segment generally provides a more stable underwriting result over-time, along with significant investment income stemming from capital invested on longer tail risk in certain lines of business. These segments also provide us with diversification across our loss reserves and the tail of our risks, which allows us to better manage changes in loss trends, whether favorable or adverse, across our underwriting portfolio.

In 2024, we delivered the combined RenaissanceRe and Validus portfolio at attractive rates and terms and conditions. We achieved our goal of creating a larger, well-diversified combined portfolio while also deepening our partnerships with brokers and clients. Even at our increased scale, we continue to remain focused on staying nimble to be able to capture attractive opportunities as they arise and exercising discipline to effectively manage our portfolio.

Looking forward to the remainder of 2025, we believe that demand in the market will continue to grow due to several factors, including the impact of recent catastrophe events, the inflation of insured values and cedants adjusting their reinsurance budgets. We believe that we are well positioned to meet this expected demand due to our flexible underwriting platform, our risk expertise, and the strength and durability of our partnerships with clients and brokers.

Property

With the global impact of climate change, we expect the frequency and severity of perils such as drought, flood, rain, hail and wildfire to continue at the elevated levels we have seen in recent years. We believe that the increase in severe weather, coupled with currently projected demographic trends in catastrophe-exposed regions, contributes to factors that will increase the average economic value of expected losses, increase the number of people exposed per year to natural disasters and, in general, exacerbate disaster risk. The impact from these factors was apparent in the recent California wildfires. However, we think that the underwriting changes that we have made, including requiring higher rates and attachment points, has optimized the portfolio and positioned us so that this catastrophe activity will have a smaller impact on our financial results than it otherwise may have.

As expected, at the January 1, 2025 renewals, demand increased at the top end of programs, as did competition for attractive placements. Overall, we deployed property catastrophe capacity with key clients and had a favorable renewal with terms and conditions remaining attractive. Growth was greatest in the property catastrophe class of business where risk-adjusted returns have been strongest and where we were able to capture incremental opportunities.

In our Property segment, we have focused on constructing a portfolio that has appropriate attachment points for each of our customers, and we expect this dynamic to persist through 2025, supporting a healthy reinsurance market and the consistent protection our customers need. Looking forward, we expect that the property catastrophe reinsurance market will be impacted by the past several quarters of elevated catastrophe events. These have affected, and we expect will continue to affect, the supply-demand balance, placing upward pressure on rates, and providing new opportunities to deploy capacity to support our customers. A significant portion of our portfolio renews over the next six months, and our strong capital position provides us with the flexibility so that we can move quickly to offer capacity to our partners at attractive rates.

Casualty and Specialty

Part of fulfilling our vision of being the best underwriter is knowing when to grow our portfolio and when to exercise discipline. Each line of business in the Casualty and Specialty segment is at a different point in the cycle and we continually manage our participation to achieve the best portfolio mix and balance of risk and

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reward. Our prior work building strong relationships with key customers has allowed us to gain superior access to desirable business. We have focused our growth in attractive areas while reducing on deals that do not meet our return hurdles. We continue to grow organically in certain credit and specialty lines of business where we are seeing the most attractive risk-adjusted returns.

At the January 1, 2025 renewals, we saw favorable underlying conditions in the specialty class of business where we achieved desirable results and maintained our strong leadership in specialty and credit lines. In the casualty class of business, we retained the majority of our portfolio and had discussions with clients on casualty trends, while continuing to reduce lines on some treaties where exposure to loss inflation or loss trends was greatest.

Our portfolio management and robust reserving process has provided us with overall stability in the Casualty and Specialty segment, allowing the segment to remain a substantial contributor to our financial results. This diversification has also been beneficial when certain classes of business or underwriting years have experienced increasing loss trends and required more reserves.

In our casualty class of business, we have been closely monitoring trends in general liability where inflation and claims severity have been increasing. We typically manage our casualty business over a 10-year cycle. At this point, we believe that the industry requires continued evolution to stay ahead of social inflation trends, and we have been actively working with customers to share our insights and improve data capture throughout the renewal process. This customer-by-customer approach enables us to differentiate between accounts, appropriately price each program, and reduce if needed. We have been encouraged to see progress across the industry and believe that many insurance companies are improving their underwriting and claims management as well as accelerating rate increases.

We believe that we have a prudent reserving process for our Casualty and Specialty segment and remain confident in our reserves. We have been closely monitoring casualty loss trends, and our longstanding approach is to recognize increasing trends early. We are reflecting our insights into our prudent reserving process to proactively stay ahead of trend and inform portfolio shaping decisions.

Fee Income

We take a differentiated approach to our Capital Partners unit, with a focus on first sourcing the risks that we intend to write, and then matching them with the appropriate third-party capital. This business improves our offerings to customers, enhances our ability to optimize our portfolios, and generates attractive fees for doing so. Our Capital Partners unit continues to grow into an attractive market and benefits from increased access to desirable risk. We view this as a growing and sustainable driver of profit that we expect will continue to generate low-volatility management fee income. However, performance fees may be impacted by large losses, which can potentially result in no performance fees or the reversal of previously accrued performance fees.

Investment Income

In 2024, we benefited from high interest rates and growth in this driver of profit as a result of our proactive rotation of the portfolio into higher yielding securities when we saw increases in interest rates. This was enhanced by the increased size of our investment portfolio, including as a result of the Validus Acquisition. We continue to maintain a relatively conservative position for our investment portfolio.

See the “Risk Factors” section in our Form 10-K for additional information on factors that could cause our actual results to differ materially from those in the forward-looking statements contained in this Form 10-K and other documents we file with the SEC.