On May 1, reinsurer RenaissanceRe
- The combined ratio increased nearly 12 points because of the windstorm Kyrill, which accounted for $71.9 million of losses and added 21.1 points to the loss ratio.
- Both RenaissanceRe and Montpelier Re
(NYSE:MRH) owe much of their success to surging investment income. RenRe's investment income grew 34%, with about a third of that increase a result of growth in hedge and private equity fund returns.
- In the latest quarter, book value per share increased 6.7% to $36.71.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
$362,618 |
$351,672 |
3.1% |
|
Investment Income |
$108,015 |
$80,434 |
34.3% |
Net Income |
$190,805 |
$178,980 |
6.6% |
EPS |
$2.63 |
$2.49 |
5.6% |
Get back to basics with a look at an insurer's income statement.
Ratio Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Loss Ratio |
40.2% |
28.2% |
12.0 |
Expense Ratio |
25.4% |
25.5% |
(0.1) |
65.6% |
53.7% |
11.9 |
|
Operating Return on Equity |
29.1% |
42.7% |
(13.6) |
What do these ratios mean?
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Investments |
$6,199,025 |
$5,403,150 |
14.7% |
Cash and Equivalents |
$270,608 |
$240,684 |
12.4% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
$2,109,864 |
$2,419,252 |
(12.8%) |
|
Unearned Premiums |
$768,882 |
$853,629 |
(9.9%) |
Long-Term Debt |
$450,000 |
$603,093 |
(25.4%) |
Learn your way around an insurer's balance sheet.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Emil Lee is an analyst and a disciple of value investing. He owns shares in Montpelier Re. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.