RenaissanceRe's Profit Drops 29 Percent In 1Q

NEW YORK (AP) — Insurer RenaissanceRe Holdings Ltd. on Wednesday missed Wall Street expectations and posted a 29 percent drop in first-quarter profit due to higher costs and lower income from investments.

During the quarter, the company earned $97.3 million or $1.57 per share, compared to $137.2 million or $2.05 per share a year earlier.

Its operating income for the quarter, which excludes gains and losses on investments, was $94.2 million, or $1.52 per share.

On average, analysts surveyed by Thomson Reuters expected quarterly earnings of $1.79 per share. Analysts do not always include special gains and losses in their estimates.

Net premiums written during the quarter rose to $446.8 million, up 11 percent from $403.1 million the same time last year.

RenaissaneRe's combined ratio rose to 56.5 percent from 51.4 percent during the year-ago quarter. Combined ratio measures the amount of money an insurer receives from writing claims compared with the amount it pays out in claims and expenses. A ratio above 100 percent indicates claims payments and expenses exceeded revenue from written premiums.

Net investment income was $42.1 million, down from $52.5 million in the year-ago period.

Shares of RenaissanceRe rose 9 cents to $49.25 during the regular session Monday.