RenaissanceRe Holdings Ltd. expanded its property catastrophe book during a strong midyear renewal season, while CEO Kevin O’Donnell emphasized a disciplined approach to casualty risk.
During the Q2 2025 earnings call, O’Donnell heralded the expansion of the company’s US property catastrophe business, with the group executing a strategy to build one of its largest and most profitable portfolios to date.
At the midyear Florida renewals, 80% of premiums were written at private terms above market rates, reflecting RenaissanceRe’s ability to secure favorable deals versus competitors.
“RenRe has been doing this in property catastrophe for a while but its increased scale is now allowing it to do so more broadly across classes," O’Donnell said, citing strong market conditions that have enabled quality portfolio growth.
Despite success in property, O’Donnell underlined RenaissanceRe’s conservative approach to casualty, particularly general liability. The company is “keeping reserve ratios high as it monitors elevated trends” and adjusting exposure where needed.
“We are pleased with rate and claims management improvements, which we believe are keeping rates above elevated trends,” he said.
Chief underwriting officer David Marra noted that current terms and conditions remain attractive, though risk-adjusted rates fell by low single digits following renewals. The group reduced exposure in select casualty lines and optimized its specialty book, capitalizing on favorable underwriting conditions.
Financially, RenaissanceRe reported Q2 net income of US$826.5 million, up from US$495 million a year ago. Underwriting income climbed to US$601.7 million, with the combined ratio improving to 75.1. Net investment income was US$413.1 million, aided by prudent investment management and increased reserve duration, offering greater flexibility amidst economic uncertainty.
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