- Underwriting income of $196.6 million and a combined ratio of 29.4%, compared to an underwriting loss of $397.2 million and a combined ratio of 230.0%, was primarily driven by the absence of large losses incurred during the first quarter of 2012, compared to the first quarter of 2011, which was negatively impacted by the Australian flooding and the New Zealand and Tohoku earthquakes which had a net negative impact (2) of $427.4 million and added 212.3 percentage points to the combined ratio.
- Gross premiums written increased $53.6 million, or 8.8%, to $664.2 million. Excluding the impact of $Nil and $113.5 million of reinstatement premiums written from large losses in the first quarter of 2012 and 2011, respectively, gross premiums written increased $167.1 million, or 33.6%, primarily due to the catastrophe unit experiencing higher risk-adjusted pricing within its core lines of business during the January 2012 renewals, combined with continued growth within the Lloyd's segment across most lines of business.
- Total investment income of $113.7 million, which includes the sum of net investment income, net realized and unrealized gains (losses) on investments and net other-than-temporary impairments, compared to $55.3 million. The increase in total investment income was primarily due to higher total returns in the Company's fixed maturity investment portfolio as a result of tightening credit spreads during the first quarter of 2012 and higher returns in the Company's private equity investment portfolio.
- Other loss of $39.1 million, compared to other income of $50.1 million, was primarily due to trading losses within the Company's weather and energy risk management operations as a result of the unusually warm weather experienced in parts of the United Kingdom and parts of the United States during the first quarter of 2012. This unit reported a pre-tax loss of $35.5 million and an after-tax loss of $32.7 million. In addition, ceded reinsurance contracts accounted for at fair value incurred a loss of $1.8 million, compared to income of $43.5 million, as a result of net recoverables on the Tohoku earthquake in the first quarter of 2011 which did not reoccur in the first quarter of 2012.
RenaissanceRe Reports Net Income Of $201.4 Million For The First Quarter Of 2012 Or $3.88 Per Diluted Common Share; Quarterly Operating Income Of $155.5 Million Or $2.98 Per Diluted Common Share
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