RenaissanceRe reported fourth-quarter earnings per share of $13.34, outperforming the consensus estimate of $10.59 and marking a 65.6% increase from $8.06 in the year-ago period. The outperformance was primarily fueled by a significant reduction in net claims costs, which fell by 22% to $420 million, as the company benefited from favorable prior-year reserve development and a benign natural catastrophe environment in the quarter. Underwriting income rose to $210 million, up from $150 million a year earlier, reflecting both improved loss ratios and disciplined risk selection across property and casualty segments.

Underwriting results were complemented by strong investment returns, with net investment income climbing 18% to $180 million. RenaissanceRe’s fixed-income portfolio generated a yield of 3.9%, while opportunistic allocations to equities and alternative credit delivered realized gains of $45 million. The combined ratio improved by 4.2 points to 89.3%, driven by a 2.8-point reduction in the loss ratio and a 1.4-point benefit in the expense ratio, underscoring efficient cost control and favorable market conditions for reinsurance pricing.

Total gross written premiums declined 4% to $2.1 billion, reflecting cautious deployment into lower-margin lines, yet still exceeding the forecasted $2.0 billion level. The firm’s return on equity for the quarter reached 16.5%, compared with 10.2% in Q4 of 2024 and above the Street’s 14% projection. Book value per share grew by 8% year-over-year to $165.40, while tangible book value rose 9% to $142.75, driven by retained earnings and favorable market movements in the investment portfolio.