RenaissanceRe 3Q15 Earnings Call Notes

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RenaissanceRe Holdings’ (RNR) CEO Kevin O’Donnell on Q3 2015 Results

There’s plenty of capital in reinsurance markets

“Capital has been and continues to be plentiful. While attractive risk remains elusive and we fully expect both of these trends to persist in 2016. We expect a challenging our operating environment in both property cat and casualty and specialty in 2016. ”

There hasn’t been a large catastrophic event to cut capital levels

“Actual returns in the property and casualty market place have been significantly above expected returns over the last several years. The lack of large catastrophic events and an overall benign claims environment for liability lines have held the actual returns in both property as well as casualty classes.”

We are in a soft rate environment

“Regardless of your focus, we are in a soft rate environment in all returns expected or actual will almost certainly degrade next year. This is one reason we are not planning to grow any of our joint venture vehicles.”

We’re way overdue for a big hurricane event

“For the 10th consecutive year latest news to report in the third quarter is what didn’t happen. Specifically there wasn’t a U.S. land falling major hurricane or any U.S. land falling hurricane for that matter. The odds of this long of a lucky streak occurring is less than 1% and in fact it’s statistically more remote than odds of the 2004 or the 2005 storm years.”

Anticipate that private equity holdings performance is mirroring the performance of public markets

“I just say that the decline in the private equity valuation was roughly in line with the decline in the public market, equity market indexes. So our process for doing that as we take estimates from each of our managers as best we can over the quarter. They are estimates there is always true ups. The strips tend to be small though that are generally made in the following quarter. But I — we certainly wouldn’t want to promise anything, but I would and certainly anticipate that our private equity valuations are somewhat mirroring the changes in the public equity markets.”