RenaissanceRe reported a return on average common equity of 25.9% and an operating return on average common equity of 18.2% for the full year 2025, capping a three-year stretch in which the Bermuda-based reinsurer more than doubled its book value.
The company posted a combined ratio of 87.2% and an adjusted combined ratio of 85.4% for the year. Large loss events added 15.3 percentage points to the full-year combined ratio, with Hurricane Melissa contributing 4.0 percentage points in the fourth quarter alone.
Book value per common share grew by 26.2%, while tangible book value per common share plus change in accumulated dividends increased by 30.8%.
For the fourth quarter, RenaissanceRe recorded an annualized return on average common equity of 27.8% and a combined ratio of 71.4%. The results followed a strong third quarter in which the company posted net income of US$907.7 million, a combined ratio of 68.4%, and an annualized ROE of 34.9%.
The 2025 results mark a rebound from 2024, when the company reported a 19.3% ROE and 83.9% combined ratio amid losses from Hurricanes Milton and Helene. In 2023, RenaissanceRe achieved a 40.5% ROE and 77.9% combined ratio, benefiting from favorable pricing and the integration of the Validus acquisition completed that November.
Book value growth has been consistent across the period, rising 57.9% in 2023, 18.5% in 2024, and 26.2% in 2025. The Validus deal significantly expanded the company's scale, with gross premiums written in the property segment rising 35.4% to over US$4.8 billion in 2024.
The company's investment portfolio generated a total investment result of US$3.0 billion for the full year, an increase of 77% compared to the prior year. Net investment income reached US$1.7 billion, while mark-to-market gains totaled US$1.2 billion.
Fee income for the fourth quarter reached US$101.6 million, up 31.8% from the same period in 2024. Full-year fee income totaled US$328.9 million.
RenaissanceRe repurchased approximately US$1.6 billion of common shares during 2025, reducing its share count by 12.8%. Fourth quarter buybacks totaled US$650.5 million, an acceleration from US$205.2 million in the third quarter. The company continued repurchasing into 2026, buying back an additional US$113.4 million through January 30.
Kevin J. O'Donnell (pictured above), president and chief executive officer, said the company retained its targeted lines at the January 1 renewal and built an underwriting portfolio designed to generate returns above the cost of capital.
"We have accomplished this by consistently executing our strategy and maximizing the returns on each of our Three Drivers of Profit – underwriting, fee and net investment income – while optimizing our capital base through significant capital return to our investors," he said.
