Q1 2026 Renaissancere Holdings Ltd Earnings Call

April 29, 2026

Speaker #1: My name is Madison, and I will be your conference operator today. At this time, I would like to welcome everyone to the Renaissance III first quarter 2026 earnings conference call and webcast.

Speaker #1: After the prepared remarks, we will open the call for your questions, instructions will be given at that time. Lastly, if you should need operator assistance, please press star zero.

Speaker #1: Thank you. I will now turn the call over to Keith McHugh, Senior Vice President of Finance and Investor Relations, please go ahead.

Speaker #2: Thank you, Madison. Good morning and welcome to Renaissance III's first quarter earnings conference call. Joining me today to discuss our results are Kevin O'Donnell, President and Chief Executive Officer; Bob Qutub, Executive Vice President and Chief Financial Officer; and David Mara, Executive Vice President and Group Chief Underwriting Officer.

Speaker #2: To begin, some housekeeping matters. Our discussion today will include forward-looking statements, including new and updated expectations, for our business and results of operations. It is important to note that actual results may differ materially from the expectations shared today.

Speaker #2: Additional information regarding the factors shaping these outcomes can be found in our SEC filings and in our earnings release. During today's call, we will also present non-GAAP financial measures, reconciliations to GAAP metrics and other information concerning non-GAAP measures may be found in our earnings release and financial supplement.

Speaker #2: Which are available on our website at renri.com. And now, I'd like to turn the call over to Kevin. Kevin?

Speaker #3: Thanks, Keith. Good morning, everyone. We are proud of the quarter's results, which reflect the strength of Renaissance III's business model and the value of our three drivers of profit.

Speaker #3: Once again, this quarter, underwriting, fee, and investment income all contributed meaningfully to strong operating income. This is gratifying as the balance contribution is central to the resilience we have been building.

Speaker #3: And advances our strategy of reducing earnings dependency on any single market condition or source of volatility. Before discussing the quarter in more detail, let me start with the broader backdrop.

Speaker #3: Geopolitical risk is elevated. Markets continue to adjust to higher for longer rate environment, and the macro environment remains increasingly fragmented, highly volatile, and less predictable.

Speaker #3: Last year, I said that our business is anti-correlated to this kind of environment, and our results demonstrate that this remains true today. As the world becomes more uncertain, and risk-averse, the value of the protection we provide increases.

Speaker #1: Non-committers may be found in our earnings release and financial supplement, which are available on our website at renaissancere.com. And now, I'd like to turn the call over to Kevin.

Speaker #1: Kevin?

Speaker #3: Our business is to underwrite the volatility others seek to avoid, we manage it to reduce our customers' risk in exchange for strong returns to our shareholders.

Speaker #2: Thanks, Keith. Good morning, everyone. We're proud of the quarter's results, which reflect the strength of Renaissance Re's business model and the value of our three drivers of profit.

Speaker #2: Once again, this quarter, underwriting fee and investment income all contributed meaningfully to strong operating income. This is gratifying as the balanced contribution is central to the resilience we've been building, and advances our strategy of reducing earnings dependency on any single market condition or source of volatility.

Speaker #3: Ultimately, our strategy is to absorb volatility, manage it efficiently in the ordinary course, and produce results over time. Recognizing occasional losses will occur. For the first quarter of 2026, we reported operating income of $591 million.

Speaker #3: A 22% annualized operating return on equity and operating earnings per share of $13.75. Tangible book value per share increased by 1.5% to $233.49. This reflects two influences.

Speaker #2: Before discussing the quarter in more detail, let me start with the broader backdrop. Geopolitical risk is elevated. Markets continue to environment, and the macro environment remains increasingly fragmented, highly volatile, and less predictable.

Speaker #2: Last year, I said that our business is anti-correlated to this kind of environment, and our results demonstrate that this remains true today. As the world becomes more uncertain and risk-averse, the value of the protection we provide increases.

Speaker #3: Retained mark-to-mark losses of $357 million and share repurchases of $353 million. At a premium to book value. I will address the mark-to-market losses and share repurchases in a few minutes, but we view these as temporary drags on book value per share.

Speaker #2: Our business is to underwrite the volatility others seek to avoid, we manage it to reduce our customers' risk in exchange for strong returns to our shareholders.

Speaker #3: And believe they help create the conditions for continuing strong overall performance. Turning to our three drivers of profit, I will start with underwriting. We reported strong underwriting income of $589 million.

Speaker #2: Ultimately, our strategy is to absorb volatility, manage it efficiently in the ordinary course, and produce results over time. Recognizing occasional losses will occur. For the first quarter of 2026, we recorded operating income of $591 million.

Speaker #3: Driven by excellent current accident performance and favorable prior year development. We benefited from approximately $160 million of favorable reserve development, with proportionally larger contribution from other property.

Speaker #2: A 22% annualized operating return on equity and operating earnings per share of $13.75. Tangible book value per share increased by 1.5% to $233.49. This reflects two influences: retained market losses of $357 million and share repurchases of $353 million at a premium to book value.

Speaker #3: This reflects our proactive portfolio positioning and superior underwriting over the last several years. I want to highlight one accomplishment from the January 1st renewals that we alluded to last quarter.

Speaker #3: While rates were down, low teen percentages, our team did an excellent job positioning into a more competitive environment. As a result, top-line and property cap, this quarter stayed relatively flat, excluding reinstatement premiums.

Speaker #2: I will address the market losses and share repurchases in a few minutes, but we'll use this temporary drags on book value per share. And believe they help create the conditions for continuing strong overall performance.

Speaker #3: Rates remain adequate, and we took an above-market share of new business, which demonstrates the strength of our franchise. As I wrote in our most recent shareholder letter, when rates are adequate, underwriters should be taking more risk.

Speaker #2: Turning to our three drivers of profit, I will start with underwriting. We reported strong underwriting income of $589 million. Driven by excellent current action performance and favorable prior year development.

Speaker #3: And we are. Meanwhile, our casualty specialty adjusted combined ratio was 99.4%. This was consistent with our guidance of high 90s and supports our view that the portfolio performed as expected.

Speaker #2: We benefited from approximately $160 million of favorable reserve development, with proportionally larger contribution from other property. This reflects our proactive portfolio positioning and superior underwriting over the last several years.

Speaker #3: David will provide more detail on our exposure to the war in the Middle East. In summary, we have limited exposure through lines narrowly designed to cover these risks.

Speaker #2: I want to highlight one accomplishment from the January 1st renewals that we alluded to last quarter. While rates were down low 18 percentages, our team did an excellent job positioning into a more competitive environment.

Speaker #3: Including war on land and marine war. I would not characterize our share in either of these markets as being outsized. Moving now to fee income, which performed equally well this quarter.

Speaker #2: As a result, top-line in property CAT, this quarter stayed relatively flat, excluding reinstatement premiums. Rates remain adequate, and we took an above-market share of new business, which demonstrates the strength of our franchise.

Speaker #3: We reported total fee income of approximately $94 million. Performance fees were the main driver of the upside, reflecting strong current year underwriting results, and favorable prior year development.

Speaker #2: As I wrote in our most recent shareholder letter, when rates are adequate, underwriters should be taking more risk. And we are. Meanwhile, our casualty specialty adjusted combined ratio was 99.4%.

Speaker #3: Capital partners continues to be an important source of persistent and diversified earnings. It allows us to leverage our industry-leading underwriting franchise to generate capital like fees.

Speaker #3: This complements the income we earn on our balance sheets, creating an additional value from our underwriting business. That is another important source of resilience, and remains a clear differentiator for Renaissance III.

Speaker #2: This was consistent with our guides of high 90s and supports our view that the portfolio performed as expected. David will provide more detail on our exposure to war in the Middle East.

Keith McCue: Non-GAAP measures may be found in our earnings release and financial supplement, which are available on our website at renre.com. Now I'd like to turn the call over to Kevin. Kevin?

Speaker #2: In summary, we have limited exposure through lines narrowly designed to cover these risks. Including war on land and marine war. I would not characterize our share in either of these markets as being outsized.

Speaker #3: Especially in markets where clients value scale, reliability, and flexibility. Moving to retained net investment income, which was $304 million for the quarter. We have executed well into difficult investment markets, and as a result, net investment income remains robust.

Kevin O'Donnell: Thanks, Keith. Good morning, everyone. We are proud of the quarter's results, which reflect the strength of RenaissanceRe's business model and the value of our three drivers of profit. Once again, this quarter, underwriting, fee, and investment income all contributed meaningfully to strong operating income. This is gratifying as the balanced contribution is central to the resilience we have been building and advances our strategy of reducing earnings dependency on any single market condition or source of volatility. Before discussing the quarter in more detail, let me start with the broader backdrop. Geopolitical risk is elevated. Markets continue to adjust, and the macro environment remains increasingly fragmented, highly volatile, and less predictable. Last year, I said that our business is anti-correlated to this kind of environment, and our results demonstrate that this remains true today.

Speaker #2: Moving now to fee income, which performed equally well this quarter. We reported total fee income of approximately $94 million. Performance fees were the main driver of the upside, reflecting strong current year underwriting results and favorable prior year development.

Speaker #3: This reflects the scale of our invested assets, the quality of the portfolio, and our rate environment that remains favorable. Fixed maturity short-term and private credit rates remain steady to higher during the quarter, which supported net investment income.

Speaker #2: Capital Partners continues to be an important source of persistent and diversified earnings. It allows us to leverage our industry-leading underwriting franchise to generate capital liabilities.

Speaker #3: Recent market moves allow us to extend duration and lock in at higher yields. Which should continue to support earnings power over time. We reduced our gold position during the quarter by about half, we originally put that hedge in place to protect the portfolio against inflation, and geopolitical risk, and it served that purpose well.

Speaker #2: This complements the income we earn on our balance sheets, creating an additional value from our underwriting business. That is another important that is another important source of resilience and remains a clear differentiator for Renaissance Re.

Speaker #2: Especially in markets where clients value scale, reliability, and flexibility. Moving to retained net investment income, which was $304 million for the quarter. We have executed well in difficult investment markets, and as a result, net investment income remains robust.

Speaker #3: As markets evolved, we chose to reduce the position, lock in gains, and lower potential future volatility in the portfolio. Importantly, the position remained profitable both in the quarter and since inception.

Kevin O'Donnell: As the world becomes more uncertain and risk-averse, the value of the protection we provide increases. Our business is to underwrite the volatility others seek to avoid. We manage it to reduce our customers' risk in exchange for strong returns to our shareholders. Ultimately, our strategy is to absorb volatility, manage it efficiently in the ordinary course, and produce results over time, recognizing occasional losses will occur. For Q1 2026, we reported operating income of $591 million, a 22% annualized operating return on equity, and operating earnings per share of $13.75. Tangible book value per share increased by 1.5% to $233.49.

Speaker #2: This reflects the scale of our invested assets, the quality of the portfolio, and a great environment that remains favorable. Fixed maturity short-term and private credit rates remain steady to higher during the quarter, which supported net investment income.

Speaker #3: Let me spend a moment on the mark-to-market losses. The same market movements that pressure period valuations, also improve reinvestment yields, and support future earnings power.

Speaker #3: So while book value takes a modest mark today, prospective earnings improve tomorrow, we view that trade-off as economically constructive. In addition, these losses largely unrealized so this is more of an issue of timing or reflecting the quarter's shift in the yield curve.

Speaker #2: Recent market moves allow us to extend duration and lock in higher yields. Which should continue to support earnings power over time. We reduced our gold position during the quarter by about half.

Speaker #2: We originally put that hedge in place to protect the portfolio against inflation, and geopolitical risk, and it served that purpose well. As markets evolved, we chose to reduce the position, lock in gains, and lower potential future volatility in the portfolio.

Speaker #3: The investment portfolio remains high quality, and its underlying earnings capacity remains strong. Consequently, we remain comfortable with the overall credit quality of the underwriting securities.

Speaker #2: Importantly, the position remained profitable both in the quarter and since inception. Let me spend a moment on the market-to-market losses. The same market movements that pressure current period valuations also improve reinvestment yields and support future earnings power.

Speaker #3: That is also true of our private credit portfolio. About 5% of our investment portfolio is in private credit. Our exceptional capital strength and high liquidity are the foundation for this measured allocation to private credit, which enhances our book yield due to the associated illiquidity premium.

Kevin O'Donnell: This reflects two influences: retained mark-to-market losses of $357 million and share repurchases of $353 million at a premium to book value. I will address the mark-to-market losses and share repurchases in a few minutes, but we view these as temporary drags on book value per share and believe they help create the conditions for continuing strong overall performance. Turning to our three drivers of profit, I will start with underwriting. We reported strong underwriting income of $589 million, driven by excellent current accident year performance and favorable prior year development. We benefited from approximately $160 million of favorable reserve development with proportionally larger contribution from Other Property. This reflects our proactive portfolio positioning and superior underwriting over the last several years.

Speaker #2: So while book value takes a modest mark today, prospective earnings improve tomorrow. We view that trade-off as economically constructive. In addition, these losses largely unrealized, so this is more of an issue of timing reflecting the quarter's shift in the yield curve.

Speaker #3: Bob will provide more color on our credit book in his comments. Shifting now to capital management, where our approach remains unchanged. We have a consistent track record of strong earnings performance, excess capital and ample liquidity.

Speaker #2: The investment portfolio remains high quality and its underlying earning capacity remains strong. Consequently, we remain comfortable with the overall credit quality of the underwriting securities.

Speaker #3: That positions us to continue returning substantial capital to shareholders, and this quarter we repurchased $353 million of our shares. We did so in a disciplined manner, allocating capital where we see favorable risk-adjusted returns.

Speaker #2: That is also true of our private credit portfolio. About 5% of our investment portfolio is in private credit. Our exceptional capital strength and high liquidity are the foundation for this measured allocation of private credit, which enhances our book yield due to the associated liquidity premium.

Speaker #3: This includes allocating to our own shares, when they trade at levels we consider compelling, relative to intrinsic value and future earnings power. Since 2024, we have repurchased over 20% of our outstanding shares.

Kevin O'Donnell: I want to highlight one accomplishment from the 1 January renewals that we alluded to last quarter. While rates were down low teen %, our team did an excellent job positioning into a more competitive environment. As a result, top line and Property Catastrophe this quarter stayed relatively flat, excluding reinstatement premiums. Rates remain adequate, and we took an above-market share of new business, which demonstrates the strength of our franchise. As I wrote in our most recent shareholder letter, when rates are adequate, underwriters should be taking more risks, and we are. Meanwhile, our casualty and specialty adjusted combined ratio was 99.4%. This was consistent with our guidance of high nineties and supports our view that the portfolio performed as expected. David will provide more detail on our exposure to the war in the Middle East.

Speaker #2: Bob will provide more color on our credit book in his comments. Shifting now to capital management, where our approach remains unchanged. We have a consistent track record of strong earnings performance excess capital and ample liquidity.

Speaker #3: This total is almost $11 million shares or 2.7 billion dollars, up until April 24th. We did this at very attractive valuations, very close to current book value, which should boost returns to shareholders with minimal dilution.

Speaker #2: That position allows us to continue returning substantial capital to shareholders, and this quarter we repurchased $353 million of our shares. We did so in a disciplined manner, allocating capital where we see favorable risk-adjusted returns.

Speaker #3: At the same time, we remain well-capitalized to support our underwriting portfolio, our partners, and future growth opportunities. Ultimately, capital management should support long-term growth and tangible book value per share, and long-term value creation per shareholders.

Speaker #2: This includes allocating to our own shares, when they trade at levels we consider compelling. Relative to intrinsic value, and future earnings power. Since 2024, we have repurchased over 20% of our outstanding shares.

Speaker #3: That remains the standard we apply. Looking ahead, the message is continuity, not change. The underwriting environment remains competitive, but rates remain adequate. Ultimately, our objective is to maximize long-term growth and tangible book value per share, and operating earnings by preserving margin.

Speaker #2: This totals almost 11 million shares, or $2.7 billion, up until April 24th. We did this at very attractive valuations, very close to current book value, which should boost returns to shareholders with minimal dilution.

Kevin O'Donnell: In summary, we have limited exposure through lines narrowly designed to cover these risks, including war on land and marine war. I would not characterize our share in either of these markets as being outsized. Moving now to fee income, which performed equally well this quarter. We reported total fee income of approximately $94 million. Performance fees were the main driver of the upside, reflecting strong current year underwriting results and favorable prior year development. Capital Partners continues to be an important source of persistent and diversified earnings. It allows us to leverage our industry-leading underwriting franchise to generate capital-like fees. This complements the income we earn on our balance sheets, creating an additional value from our underwriting business. That is another important source of resilience and remains a clear differentiator for RenaissanceRe, especially in markets where clients value scale, reliability, and flexibility.

Speaker #2: At the same time, we remain well capitalized to support our underwriting portfolio, our partners, and future growth opportunities. Ultimately, capital management should support long-term growth and tangible book value per share, and long-term value creation per shareholders.

Speaker #3: Constructing the right portfolio and allocating capital with discipline. That has been our approach through the cycle. And it remains our approach today. When we think about the balance of 2026, our outlook remains constructive.

Speaker #2: That remains the standard we apply. Looking ahead, the message is continuity, not change. The underwriting environment remains competitive, but rates remain adequate. Ultimately, our objective is to maximize long-term growth and tangible book value per share, and operating earnings by preserving margin.

Speaker #3: The underwriting portfolio is performing well. And our earnings model continues to benefit from multiple diversified sources of income. With that, I'll turn it over to Bob to discuss the financials, in more detail, and then to David to provide additional color on underwriting and renewals.

Speaker #1: Thanks, Kevin. And good morning to everyone. We delivered a strong start to 2026, in a quarter with both geopolitical and economic volatility. Our diversified earnings model continued to produce superior returns for shareholders.

Speaker #2: Constructing the right portfolio and allocating capital with discipline—that is our approach through the cycle, and it remains our approach today. When we think about the balance of 2026, our outlook remains constructive.

Speaker #1: We generated operating earnings per share of $13.75 and annualized operating return on equity of 22%. Annualized return on equity was 10.5%, which included $357 million of retained mark-to-market losses.

Speaker #2: The underwriting portfolio is performing well, and our earnings model continues to benefit from multiple, diversified sources of income. With that, I'll turn it back to discuss the financials in more detail, and then to David to provide additional color on underwriting results.

Kevin O'Donnell: Moving to retained net investment income, which was $304 million for the quarter. We have executed well into difficult investment markets, and as a result, net investment income remains robust. This reflects the scale of our invested assets, the quality of the portfolio, and a rate environment that remains favorable. Fixed maturity, short term, and private credit rates remained steady to higher during the quarter, which supported net investment income. Recent market moves allow us to extend duration and lock in at higher yields, which should continue to support earnings power over time. We reduced our gold position during the quarter by about half. We originally put that hedge in place to protect the portfolio against inflation and geopolitical risk, and it served that purpose well. As markets evolved, we chose to reduce the position, lock in gains, and lower potential future volatility in the portfolio.

Speaker #1: Importantly, each of our drivers of profit contributed meaningfully in the quarter. Providing a diversified and resilient earnings profile, there are a few numbers that will help demonstrate this.

Speaker #1: Thanks, Kevin. And good morning, everyone. We delivered a strong start to 2026 in a quarter with both geopolitical and economic volatility. Our diversified earnings model continued to produce superior returns for shareholders.

Speaker #1: First, 15 points. Which is the contribution from fee income and retained net investment income to our overall return on average common equity in the quarter.

Speaker #1: This provides a solid foundation of earnings each quarter, which we then build upon with income from our underwriting business. Second, $589 million. Which is the underwriting income we generated this quarter.

Speaker #1: Importantly, each of our drivers of profit contributed meaningfully in the quarter. Providing a diversified and resilient earnings profile there are a few numbers that will help demonstrate this.

Speaker #1: This reflects disciplined, risk selection, and cycle management. And third, $353 million. Which is the capital we returned to shareholders through share repurchases during the quarter.

Speaker #1: First, 15 points. Which is the contribution from the income and retained net investment income to our overall return on average common equity in the quarter.

Speaker #1: We continue to view our shares as attractive, at current valuations, and share repurchases remain an important part of our capital management strategy. Taking a step back, this performance is a continuation of the strong results we have been delivering over the last three years.

Kevin O'Donnell: Importantly, the position remained profitable both in the quarter and since inception. Let me spend a moment on the mark-to-market losses. The same market movements that pressure current period valuations also improve reinvestment yields and support future earnings power. While book value takes a modest mark today, prospective earnings improve tomorrow. We view that trade-off as economically constructive. In addition, these losses largely unrealized, so this is more of an issue of timing reflecting the quarter shift in the yield curve. The investment portfolio remains high quality and its underlying earnings capacity remains strong. Consequently, we remain comfortable with the overall credit quality of the underwriting securities. That is also true of our private credit portfolio. About 5% of our investment portfolio is in private credit.

Speaker #1: This reflects disciplined, risk selection, and cycle management. And third, $353 million. Which is the capital we returned to shareholders through. We continue to view our shares as attractive at current valuations and share repurchases remain an important part of our capital management strategy.

Speaker #1: In the last four quarters alone, we've delivered 2.5 billion dollars of operating income, with an operating return on average common equity of 24%. With such a strong base of earnings, we are better able to absorb volatility, from a large event, and any one quarter while continuing to grow shareholder value over time.

Speaker #1: Taking a step back, this performance is a continuation of the strong results we have been delivering over the last three years. In the last four quarters alone, we've delivered $2.5 billion of operating income with an operating return on average common equity of 24%.

Speaker #1: Now, I'd like to turn to a more detailed view of our three drivers of profit. Starting with underwriting. Let me begin with the key point.

Speaker #1: Even as rates decline, and some parts of the reinsurance market, our underwriting book remains highly profitable. In the first quarter, we delivered an adjusted combined ratio of 72%, reflecting disciplined underwriting and portfolio construction.

Speaker #1: With such a strong base of earnings, we are better able to absorb volatility for a large event in any one quarter while continuing to grow shareholder value over time.

Speaker #1: Now, I'd like to turn to a more detailed view of our three drivers of profit, starting with underwriting. Let me begin with the key point.

Speaker #1: We reported favorable development across both segments, with most of it coming from other property where we fully retained in our bottom line results. Property catastrophe, we reported a current accident-year loss ratio of 10.2%, and an adjusted combined ratio of 19.2%.

Kevin O'Donnell: Our exceptional capital strength and high liquidity are the foundation for this measured allocation to private credit, which enhances our book yield due to the associated illiquidity premium. Bob will provide more color on our credit book in his comments. Shifting now to capital management, where our approach remains unchanged. We have a consistent track record of strong earnings performance, excess capital, and ample liquidity. That positions us to continue returning substantial capital to shareholders, and this quarter we repurchased $353 million of our shares. We did so in a disciplined manner, allocating capital where we see favorable risk-adjusted returns. This includes allocating to our own shares when they trade at levels we consider compelling relative to intrinsic value and future earnings power. Since 2024, we have repurchased over 20% of our outstanding shares.

Speaker #1: Even as rates decline in some parts of the reinsurance market, our underwriting book remains highly profitable. In the first quarter, we delivered an adjusted combined ratio of 72%, reflecting disciplined underwriting and portfolio construction.

Speaker #1: This reflected 11 percentage points of favorable development across a range of accident years. In other property, we had another excellent quarter. With a current accident-year loss ratio of 55.5%, and an adjusted combined ratio of 56.1%.

Speaker #1: We reported favorable development across both segments, with most of it coming from other property, where we fully retained it in our bottom line results. Property catastrophe reported a current accident-year loss ratio of 10.2% and an adjusted combined ratio of 19.2%.

Speaker #1: This included 29 percentage points of favorable development, primarily from our non-cat attritional book. Casualty and specialty remained in line with our expectations, with an adjusted combined ratio of 99.4%.

Speaker #1: This reflected 11 percentage points of favorable development across a range of accident years. In other property, we had another excellent quarter, with current accident-year loss ratio of 55.5% and adjusted combined ratio of 56.1%.

Speaker #1: Shifting to overall gross premiums written, which were 3.4 billion dollars, down 16% from the comparable quarter, or 9% without reinstatement premiums. It is important to remember that our results last year, included the California wildfires, which increased loss activity and drove most of the $340 million of reinstatement premiums in Q1, 2025.

Speaker #1: This included 29 percentage points of favorable development, primarily from our non-cap attritional book. Casualty and specialty remained in line with our expectations, with an adjusted combined ratio of 99.4%.

Kevin O'Donnell: This total is almost 11 million shares or $2.7 billion up until 24 April. We did this at very attractive valuations, very close to current book value, which should boost returns to shareholders with minimal dilution. At the same time, we remain well capitalized to support our underwriting portfolio, our partners, and future growth opportunities. Ultimately, capital management should support long-term growth and tangible book value per share and long-term value creation for shareholders. That remains the standard we apply. Looking ahead, the message is continuity, not change. The underwriting environment remains competitive, but rates remain adequate. Ultimately, our objective is to maximize long-term growth and tangible book value per share and operating earnings by preserving margin, constructing a right portfolio, and allocating capital with discipline. That has been our approach through the cycle, and it remains our approach today.

Speaker #1: Shifting to overall gross premiums written, which were 3.4 billion down 16% from the comparable quarter or 9% without reinstatement premiums. It is important to remember that our results last year included the California wildfires, which increased loss activity and drove most of the $340 million of reinstatement premiums in Q1, 2025.

Speaker #1: After accounting for reinstatement premiums, property catastrophe gross written premiums were nearly flat. Other property was down 7%, and casualty and specialty was down 13%.

Speaker #1: David will discuss this in more detail, but these movements reflect deliberate portfolio shaping towards the most attractive classes of business. Property catastrophe is generally our highest margin business, and we have successfully found opportunities to deploy capital to grow selectively, which help offset the impact of downward rate pressure.

Speaker #1: After accounting for reinstatement premiums, property catastrophe growth-written premiums were nearly flat. Other property was down 7%, and casualty and specialty were down 13%. David will discuss this in more detail, but these movements reflect deliberate portfolio shaping towards the most attractive classes of business.

Speaker #1: Property catastrophe is generally our highest-margin business, and we have successfully found opportunities to deploy capital to grow selectively, which helps offset the impact of downward rate pressure.

Speaker #1: In casualty and specialty, we have continued to trim back exposure in general casualty, we have also reduced uncertain specialty classes like cyber, where rates have been under more pressure.

Speaker #1: Professional liability premiums were up in the quarter. However, this is not reflective of growth in the portfolio. It was driven by lower premium adjustments last year, related to lower premiums last year related to negative premium adjustments, and a reclassification from professional liability to general casualty.

Speaker #1: In casualty and specialty, we have continued to trim back exposure in general casualty. We have also reduced uncertain specialty classes like cyber, where rates have been under more pressure.

Speaker #1: Professional liability premiums were up in the quarter. However, this is not reflective of growth in the portfolio. It was driven by lower premium adjustments last year related to lower premiums last year related to negative premium adjustments and a reclassification from professional liability to general casualty.

Kevin O'Donnell: When we think about the balance of 2026, our outlook remains constructive. The underwriting portfolio is performing well, and our earnings model continues to benefit from multiple diversified sources of income. With that, I'll turn it over to Bob to discuss the financials in more detail and then to David to provide additional color on underwriting and renewals.

Speaker #1: Looking ahead, in the second quarter, we expect other property net premiums earned of around $350 million and an attritional loss ratio in the mid-50s.

Speaker #1: In casualty and specialty net premiums earned of approximately 1.3 billion, and an adjusted combined ratio in the high 90s. Turning now to fee income, where we generated 94 million dollars of fees, with management fees of 48 million dollars, and performance fees of 46 million dollars.

Speaker #1: In casualty and specialty, net premiums earned of approximately $1.3 billion and an adjusted combined ratio in the high 90s. Turning now to the income, where we generated $94 million of fees, with management fees of $48 million and performance fees of $46 million.

Robert Qutub: Thanks, Kevin, and good morning to everyone. We delivered a strong start to 2026 in a quarter with both geopolitical and economic volatility. Our diversified earnings model continued to produce superior returns for shareholders. We generated operating earnings per share of $13.75, an annualized operating return on equity of 22%. Annualized return on equity was 10.5%, which included $357 million of retained mark-to-market losses. Importantly, each of our drivers of profit contributed meaningfully in the quarter, providing a diversified and resilient earnings profile. There are a few numbers that will help demonstrate this. First, 15 points, which is the contribution from fee income and retained net investment income to our overall return on average common equity in the quarter.

Speaker #1: Performance fees were higher than our expectations due to a combination of strong underwriting results, favorable development, and a one-time recognition of deferred performance fees related to a return of capital by Da Vinci.

Speaker #1: Performance fees were higher than our expectations due to a combination of strong underwriting results, favorable development, and overseas-related to a return of capital by Da Vinci.

Speaker #1: Looking ahead to the second quarter, we expect management fees to be around 50 million dollars, and performance fees will vary by quarter, but should come in around 120 million dollars for the year, absent any large loss events or favorable development.

Speaker #1: Looking ahead to the second quarter, we expect management fees to be around $50 million, and performance fees will vary by quarter but should come in around $120 million for the year, absent any large loss events or favorable development.

Speaker #1: Turning now to investments, where retained net investment income was 304 million dollars. This was down about 3% from the fourth quarter due to lower average interest rates in the first two months of the quarter.

Speaker #1: Turning now to investments where retained net investment income was $304 million. This was down about 3% from the fourth quarter due to lower average interest rates in the first two months of the quarter.

Speaker #1: We recorded 350 million dollars of retained mark-to-market losses in the quarter. About half of these are related to our fixed maturity portfolio, and the other half related to equity losses, which were consistent with the volatility experienced in the broader market.

Speaker #1: We recorded $350 million of retained mark-to-market losses in the quarter, about half of these are related to our fixed maturity portfolio and the other half related to equity losses which were consistent with the volatility experienced in the broader market.

Robert Qutub: This provides a solid foundation of earnings each quarter, which we then build upon with income from our underwriting business. Second, $589 million, which is the underwriting income we generated this quarter. This reflects disciplined risk selection and cycle management. Third, $353 million, which is the capital we returned to shareholders through. We continue to view our shares as attractive at current valuations and share repurchases remain an important part of our capital management strategy. Taking a step back, this performance is a continuation of the strong results we have been delivering over the last three years. In the last four quarters alone, we've delivered $2.5 billion of operating income with an operating return on average common equity of 24%.

Speaker #1: While increased treasury yields have a short-term negative impact, they also improve reinvestment yields, which support our longer-term earnings power. During the quarter, we took advantage of financial market volatility to adjust the composition of our portfolio.

Speaker #1: We'll increase treasury yields have a short-term negative impact; they also improve reinvestment yields which support our longer-term earning power. During the quarter, we took advantage of financial market volatility to adjust the composition of our portfolio.

Speaker #1: First, we reduced our retained investment portfolio's exposure to gold from 5% to 2%. In doing so, we realized gains from a hedge that has performed well for us and has been profitable both in the quarter and since inception.

Speaker #1: Second, we increased our exposure to high-quality investment-grade corporate credit. We're spread in all units and spread in all yields offered attractive risk-adjusted returns. At the same time, we reduced our exposure to short-term treasuries.

Speaker #1: Second, we increased our exposure to high-quality investment-grade corporate credit. We're spread in all yields offered attractive, risk-adjusted returns, at the same time reduced our exposure to shorter-term treasuries, and third, through these allocation changes, we extended duration on the retained portfolio to 3.4 years from three years and increased the yield on the portfolio.

Robert Qutub: With such a strong base of earnings, we are better able to absorb volatility from a large event in any one quarter while continuing to grow shareholder value over time. Now, I'd like to turn to a more detailed view of our three drivers of profit, starting with underwriting. Let me begin with the key point. Even as rates decline in some parts of the reinsurance market, our underwriting book remains highly profitable. In Q1, we delivered an adjusted combined ratio of 72%, reflecting disciplined underwriting and portfolio construction. We reported favorable development across both segments, with most of it coming from Other Property, where we fully retain in our bottom line results. Property Catastrophe, we reported a current accident year loss ratio of 10.2%, and an adjusted combined ratio of 19.2%.

Speaker #1: And third, through these allocation changes, we extended the duration on the retained portfolio to 3.4 years from three years and increased the yield on the portfolio.

Speaker #1: In the second quarter, we expect retained net investment income to trend slightly up. Finally, I want to briefly address the private credit investments. Private managers, sub-strategies, sectors, geographies, and vintage years.

Speaker #1: In the second quarter, we expect retained net investment income to trend slightly up. Finally, I want to briefly address the private credit investments. Private credit assets are diversified across managers, sub-strategies, sectors, geographies, and vintage years.

Speaker #1: We invest through institutional closing structures run by high-quality managers. We emphasize senior-secured lending and other areas where structure, collateral, and managers' selectivity provide downside protection.

Speaker #1: We invest through institutional closed-in structures run by high-quality managers. We emphasize senior-secured lending and other areas where structure, collateral, and manager selectivity provide downside protection.

Speaker #1: Further, we have limited exposure to currently strained areas such as software or through BDCs. We believe current volatility presides opportunities to selectively increase our exposure to private credit.

Speaker #1: In summary, our investment portfolio performed well and we took advantage of market volatility to incrementally improve the investment portfolio composition. We believe these changes will improve expected net income on a growing invested asset base.

Robert Qutub: This reflected 11 percentage points of favorable development across a range of accident years. In Other Property, we had another excellent quarter with a current accident year loss ratio of 55.5% and an adjusted combined ratio of 56.1%. This included 29 percentage points of favorable development, primarily from our non-cat attritional book. Casualty and specialty remained in line with our expectations, with an adjusted combined ratio of 99.4%. Shifting to overall gross premiums written, which were $3.4 billion, down 16% from the comparable quarter, or 9% without reinstatement premiums. It is important to remember that our results last year included the California wildfires, which increased loss activity and drove most of the $340 million of reinstatement premiums in Q1 2025.

Speaker #1: Moving now to a few comments on tax and expenses where our overall effective tax rate for GAAP net income was 6%. We had a few one-off items which benefited the tax rate and we expect it will return to low double digits next quarter.

Speaker #1: Moving now to a few comments on tax and expenses, where our overall effective tax rate for our gap net income was 6%. We had a few one-off items which benefited the tax rate and we expect it will return to low double digits next quarter.

Speaker #1: As a reminder, although non-controlling interest results are included in pre-tax income, we are not taxed on the earnings that belong to our capital partner investors which reduces our GAAP effective tax rate.

Speaker #1: This quarter, we also benefited from the Bermuda Substance-Based Tax Credit. As you will recall, last year we were able to realize 50% of the value.

Speaker #1: This quarter, we also benefited from the Bermuda Substance-Based Tax Credits. As you will recall, last year we were able to realize 50% of the value, in 2026 we're able to recognize 75%.

Speaker #1: In 2026, we're able to recognize 75%. About two-thirds of the value is reflected in underwriting and had a 90 basis point impact on the combined debt ratio with the remainder in corporate expenses.

Robert Qutub: After accounting for reinstatement premiums, Property Catastrophe gross written premiums were nearly flat. Other Property was down 7%, and casualty and specialty was down 13%. David will discuss this in more detail, but these movements reflect deliberate portfolio shaping towards the most attractive classes of business. Property Catastrophe is generally our highest margin business, and we have successfully found opportunities to deploy capital to grow selectively, which help offset the impact of downward rate pressure. In casualty and specialty, we have continued to trim back exposure in general casualty. We have also reduced on certain specialty classes like cyber, where rates have been under more pressure. Professional liability premiums were up in the quarter. However, this is not reflective of growth in the portfolio.

Speaker #1: About two-thirds of the value is reflected in underwriting and had a 90 basis point impact on the combined debt ratio with the remainder in corporate expenses.

Speaker #1: Inclusive of the credits, our inclusive of the credits, our operating expense ratio for the quarter was 4.1%, up from 3.7% in the comparable quarter or flat when you factor in the impact of reinstatement premiums in the first quarter of 2025.

Speaker #1: Inclusive of the credits, are our inclusive of the credits, our operating expense ratio for the quarter was 4.1%, up from 3.7% in the comparable quarter or flat when you factor in the impact of reinstatement premiums in the first quarter of 2025.

Speaker #1: There were a few one-time reductions in the quarter which pushed this ratio down, but looking ahead, we continue to expect our operating expense ratio to grow to 5 to 5.5% over the year as we continue to invest in the business.

Speaker #1: Let's close now with capital management where our earnings strength and consistency continue to generate substantial capital. During the quarter, we repurchased $1.2 million shares for $353 million at an average price of $289 per share.

Speaker #1: Let me close now with capital management, where our earnings strength and consistency continue to generate substantial capital. During the quarter, we repurchased $1.2 million shares for $353 million at an average price of $289 per share.

Robert Qutub: It was driven by lower premiums last year related to negative premium adjustments and a reclassification from professional liability to general casualty. Looking ahead, in Q2, we expect Other Property net premiums earned of around $350 million and an attritional loss ratio in the mid-fifties. In casualty and specialty net premiums earned of approximately $1.3 billion and an adjusted combined ratio in the high nineties. Turning now to fee income, where we generated $94 million of fees, with management fees of $48 million and performance fees of $46 million. Performance fees were higher than our expectations due to a combination of strong underwriting results, favorable development and fees related to a return of capital by DaVinci.

Speaker #1: In April 24th, we repurchased an additional $105 million of our shares for a year-to-date total of $458 million. We expect to continue our disciplined approach to capital management in 2026, first by seeking to deploy capital into desirable, underwriting opportunities, and second by returning excess capital to our shareholders at attractive prices.

Speaker #1: And through April 24th, we repurchased an additional $105 million of our shares for a year-to-date total of $458 million. We expect to continue our disciplined approach to capital management in 2026, first by seeking to deploy capital into desirable, underwriting opportunities, and second by returning excess capital to our shareholders at attractive prices.

Speaker #1: In summary, I'm pleased with our performance in the quarter. Each of our three drivers of profit continue to deliver strong results and demonstrate the benefits of our diversified earnings model.

Speaker #1: And with that, I'll now turn the call over to David.

Speaker #1: So in summary, I'm pleased with our performance in the quarter, each of our three drivers of profit continue to deliver strong results and demonstrate the benefits of our diversified earnings model.

Speaker #2: Thanks, Bob, and good morning, everyone. In the first quarter, we delivered strong financial results across each of our drivers of profit and differentiated Renaissanceere in the market through superior underwriting execution.

Speaker #1: And with that, I'll now turn the call over to David.

Robert Qutub: Looking ahead to Q2, we expect management fees to be around $50 million, and performance fees will vary by quarter, but should come in around $120 million for the year, absent any large loss events or favorable development. Turning now to investments, where retained net investment income was $304 million. This was down about 3% from Q4 due to lower average interest rates in the first two months of Q1. We recorded $357 million of retained mark-to-market losses in Q1. About half of these are related to our fixed maturity portfolio, and the other half related to equity losses, which were consistent with the volatility experienced in the broader market. While increased treasury yields have a short-term negative impact, they also improve reinvestment yields, which support our longer-term earnings power.

Speaker #2: I couldn't be more pleased with the underwriters' performance. The team retained profitable business, grew selectively, and maintained underwriting discipline with a focus on preserving margin.

Speaker #2: Thanks, Bob, and good morning, everyone. In the first quarter, we delivered strong financial results across each of our drivers of profit and differentiated renaissance re in the market through superior underwriting execution.

Speaker #2: Great adequacy across the portfolio remains attractive and should continue to support strong shareholder returns. At each renewal, our underwriting team has two objectives. First, deliver our marketly value proposition to clients and brokers.

Speaker #2: That supports a durable pipeline of renewable business—first-call status and favorable signings that are resilient to competition. Second, construct the optimal underwriting portfolio across business segments to support each of our three drivers of profit.

Speaker #2: And generate capital-efficient, attractive returns both in the current year and over the cycle. Our underwriting team's excellent execution of both objectives continues to differentiate RenaissanceRe.

Speaker #2: That supports a durable pipeline of renewable business. First call status and favorable signings that are resilient to competition. Second, construct the optimal underwriting portfolio across business segments to support each of our three drivers of profit.

Speaker #2: We combine underwriting expertise, portfolio management, and capital flexibility to identify the best opportunities. And we are able to convert those opportunities into signed business because of the value we bring to our clients.

Robert Qutub: During the quarter, we took advantage of financial market volatility to adjust the composition of our portfolio. First, we reduced our retained investment portfolio's exposure to gold from 5% to 2%. In doing so, we realized gains from a hedge that has performed well for us and has been profitable both in the quarter and since inception. Second, we increased our exposure to high-quality investment-grade corporate credit, where spreads and all-in yields offered attractive risk-adjusted returns. At the same time, we reduced our exposure to shorter-term treasuries. Third, through these allocation changes, we extended duration on the retained portfolio to 3.4 years from 3 years and increased the yield on the portfolio. In Q2, we expect retained net investment income to trend slightly up. Finally, I want to briefly address the private credit investments.

Speaker #2: We support them consistently over the years, offer large lines, and lead market quotes, often when others will not. We transact with them holistically across products, geographies, and balance sheets.

Speaker #2: And when they have claims, we differentiate with speed of payment and claims insights. This is why we're successful in securing the lines we target even when programs are over-scrubbed.

Speaker #2: It is also why we have been able to capture more than our market share of new demand and continue to shape portfolio toward more attractive risks.

Speaker #2: Our first quarter results demonstrate the continued efficacy of these actions. Our portfolio drove underwriting income of over $580 million, supported by a strong current accident year loss ratio of 53, and favorable prior development across both segments.

Speaker #2: It is also why we have been able to capture more than our market share of new demand and continue to shape the portfolio toward more attractive risks.

Speaker #2: Let me cover our segments in more detail starting with property. As we discussed last quarter, the January 1 book saw a property cap reinsurance rate down on average in the low teens for our portfolio.

Speaker #2: Our first quarter results demonstrate the continued efficacy of these actions. Our portfolio drove underwriting income of over $580 million supported by a strong current accident-year loss ratio of 53 and favorable prior-year development across both segments.

Robert Qutub: Private credit assets are diversified across managers, sub-strategies, sectors, geographies, and vintage years. We invest through institutional closed-end structures run by high-quality managers. We emphasize senior secured lending in other areas where structure, collateral, and manager selectivity provide downside protection. Further, we have limited exposure to currently strained areas, such as software or through BDCs. We believe current volatility provides opportunities to selectively increase our exposure to private credit. In summary, our investment portfolio performed well, and we took advantage of market volatility to incrementally improve the investment portfolio composition. We believe these changes will improve expected net income on a growing invested asset base. Moving now to a few comments on tax and expenses, where our overall effective tax rate for our GAAP net income was 6%.

Speaker #2: US accounts were down close to 10% and international and global accounts closer to 15%. At today's rates and favorable terms and conditions, property cap is still highly accretive with strong rate adequacy.

Speaker #2: Let me cover our segments in more detail starting with property. As we discussed last quarter, the January 1 book saw property cap reinsurance rates down on average in the low teens for our portfolio.

Speaker #2: We successfully deployed capital to this attractive market. We retained the majority of our portfolio and deployed $1 billion of new limit. This was a strong team effort and it demonstrates our ability to act as high-quality opportunities in a competitive but still very profitable market.

Speaker #2: US accounts were down closer to 10% and international and global accounts closer to 15%. At today's rates, and favorable terms and conditions, property cap is still highly accretive with strong rate adequacy.

Speaker #2: As a result, gross written premiums in property catastrophe, our highest market business, were roughly flat, down only 3% from Q1 2025 excluding reinstatement premiums.

Speaker #2: We successfully deployed capital into this attractive market. We retained the majority of our portfolio and deployed $1 billion of new limit. This was a strong team effort and it demonstrates our ability to access high-quality opportunities in a competitive, but still very profitable market.

Speaker #2: Specifically, we deployed additional limit by focusing on two main areas. First, we grew our accounts in layers with the most attractive margins, such as select California deals impacted by the wildfires and certain nationwide accounts.

Speaker #2: As a result, gross written premiums in property catastrophe, our highest margin business, were roughly flat, down only 3% from Q1 2025, excluding reinstatement premiums.

Speaker #2: Second, we grew several large US clients where we captured new demand on business which remains highly rate adequate. Global accounts and international business experienced more rate pressure than US portfolio.

Robert Qutub: We had a few one-off items which benefited the tax rate, and we expect it will return to low double digits next quarter. As a reminder, although non-controlling interest results are included in pre-tax income, we are not taxed on the earnings that belong to our capital partner investors, which reduces our GAAP effective tax rate. This quarter, we also benefited from the Bermuda substance-based tax credits. As you will recall, last year we were able to realize 50% of the value. In 2026, we are able to recognize 75%. About two-thirds of the value is reflected in underwriting and had a 90 basis point impact on the combined ratio with the remainder in corporate expenses. Inclusive of the credits are.

Speaker #2: Specifically, we deployed additional limit by focusing on two main areas. First, we grew on accounts in layers with the most attractive margins, such as select California deals impacted by the wildfires, and certain nationwide accounts.

Speaker #2: These accounts remain attractive due to the diversified portfolios we maintain with them and the pipeline of renewable business they represent. We also saw opportunities in the retro market to purchase additional protection on attractive terms.

Speaker #2: Second, we grew with several large US clients where we captured new demand on business which remains highly rate adequate. Global accounts and international business experienced more rate pressure than the US portfolio.

Speaker #2: Seeded rates were down high-teens across our portfolio. We are a significant buyer of retrocessional protection, and we're a first call for purchasing opportunities. Similar to our position in the Amworth book.

Speaker #2: In addition, we upsized our Mona Lisa cap bond at significantly more attractive terms and conditions. Looking ahead, we're making good progress on the US mid-year renewals.

Speaker #2: We've already found about half of our US mid-year portfolio and roughly half of that has been in private terms. The Florida market continues to benefit from strong pricing, reduced social inflation due to our reform, and robust terms and conditions.

Speaker #2: Seeded rates were down high teens across our portfolio. We are a significant buyer of retrocessional protection and our first call for purchasing opportunities. Similar to our position in the inwards book.

Robert Qutub: Inclusive of the credits, our operating expense ratio for the quarter was 4.1%, up from 3.7% in the comparable quarter or flat when you factor in the impact of reinstatement premiums in Q1 2025. There were a few one-time reductions in the quarter which pushed this ratio down. Looking ahead, we continue to expect our operating expense ratio to grow to 5% to 5.5% over the year as we continue to invest in the business. Let me close now with capital management, where our earnings strength and consistency continue to generate substantial capital. During the quarter, we repurchased 1.2 million shares for $353 million at an average price of $289 per share.

Speaker #2: As a result of this improved environment, policy counts are at a record low. The shift from public to private markets benefits the entire distribution chain, including increasing demand for reinsurance.

Speaker #2: In addition, we upsized our Mona Lisa cap bond at significantly more attractive terms and conditions. Looking ahead, we are making good progress on the US mid-year renewals.

Speaker #2: We grew in Florida through the valid acquisition and organically in 2025. I feel confident in the current positioning of our portfolio and our ability to access profitable business from existing programs and new demand in Q2.

Speaker #2: We have already bound about half of our US mid-year portfolio in roughly half of that has been on private terms. The Florida market continues to benefit from strong pricing, reduced social inflation due to tort reform, and robust terms and conditions.

Speaker #2: In other property, we continue to shape the book to reduce peak exposure while preserving attractive margins. The business is performing well, with strong current and prior year loss ratios reflecting the quality of our underwriting decisions and our disciplined management of the book.

Speaker #2: As a result of this improved environment, policies that citizens are at a record low. The shift from public to private markets benefits the entire distribution chain, including increasing demand for reinsurance.

Speaker #2: We grew in Florida through the validus acquisition and organically in 2025. I feel confident in the current positioning of our portfolio and our ability to access profitable business from existing programs and new demand in Q2.

Speaker #2: Terms and conditions remain strong, but pricing is under more pressure. We are trimming exposure in the most pressured areas and improving expected net profitability through seeded reinsurance.

Robert Qutub: Through 24 April, we repurchased an additional $105 million of our shares for a year-to-date total of $458 million. We expect to continue our disciplined approach to capital management in 2026, first, by seeking to deploy capital into desirable underwriting opportunities, and second, by returning excess capital to our shareholders at attractive prices. In summary, I'm pleased with our performance in the quarter. Each of our three drivers of profit continue to deliver strong results and demonstrate the benefits of our diversified earnings model. With that, I'll now turn the call over to David.

Speaker #2: Turning to casualty and specialty, market conditions are a continuation of the experience at 1-1. We see ongoing rate increases and generalizability, which are necessary in order to keep pace with loss trend.

Speaker #2: In other property, we continue to shape the book to reduce peak exposure while preserving attractive margins. The business is performing well with strong current and prior-year loss ratios, reflecting the quality of our underwriting decisions and our disciplined management of the book.

Speaker #2: And we see increased competition in specialty and credit lines in response to recent profitability. We've been optimizing the casualty and specialty book through risk selection, portfolio mix, and greater use of ceded reinsurance.

Speaker #2: Our team has done a fantastic job of underwriting our clients' business across the various classes they purchase. This is especially important for the casualty and specialty business, as it allows us to pick the best deals within each class and construct a more diversified portfolio.

Speaker #2: Turning to casualty and specialty, market conditions are a continuation of what we experienced at 1-1. We see ongoing rate increases in general liability, which are necessary in order to keep pace with loss trend.

David Marra: Thanks, Bob, and good morning, everyone. In Q1, we delivered strong financial results across each of our drivers of profit and differentiated RenaissanceRe in the market through superior underwriting execution. I couldn't be more pleased with the underwriter's performance. Team retained profitable business, grew selectively, and maintained underwriting discipline with a focus on preserving margin. Rate adequacy across the portfolio remains attractive and should continue to support strong shareholder returns. At each renewal, our underwriting team has two objectives. First, deliver our market-leading value proposition to clients and brokers. That supports a durable pipeline of renewable business, first call status, and favorable signings that are resilient to competition. Second, construct the optimal underwriting portfolio across business segments to support each of our three drivers of profit, and generate capital-efficient, attractive returns both in the current year and over the cycle.

Speaker #2: In generalizability, we have reduced some deals which are most exposed to social inflation. Our exposure to this class is down 40% over the last two years, but premiums are down significantly less because of rate increases.

Speaker #2: In addition, we have been proactively shifting the portfolio mix to weight the best-returning businesses, with Specialty and Credit now making up more than half of the portfolio.

Speaker #2: Our team has done a fantastic job of underwriting our clients' business across the various classes they purchase. This is especially important for the casualty and specialty business.

Speaker #2: We've consistently used seeded reinsurance in the segment to manage risk and optimize returns. And at Q1, we found new attractive opportunities to increase these protections on long-tail lines with general professional liability and specialty classes such as marine and energy.

Speaker #2: As it allows us to pick the best deals within each class and construct a more diversified portfolio. In general liability, we have reduced on deals, which are most exposed to social inflation.

Speaker #2: Our exposure to this class is down 40% over the last two years, but premiums are down significantly less because of rate increases. In addition, we have been proactively shifting the portfolio mix to weight the best returning business with specialty and credit now making up more than half of the portfolio.

Speaker #2: Today, we see 20% of casualty and specialty premiums compared to 13% a year ago. As in property, we see the entire market from an inwards and outwards perspective and are uniquely positioned to construct the optimal net portfolio.

David Marra: Our underwriting team's excellent execution of both objectives continues to differentiate RenaissanceRe. We combine underwriting expertise, portfolio management, and capital flexibility to identify the best opportunities, and we are able to convert those opportunities into signed business because of the value we bring to our clients. We support them consistently over the years, offer large lines, and lead market quotes, often when others will not. We transact with them holistically across products, geographies, and balance sheets, and when they have claims, we differentiate with speed of payment and claims insights. This is why we're successful in securing the lines we target, even when programs are oversubscribed. It is also why we have been able to capture more than our market share of new demand and continue to shape the portfolio toward more attractive risks. Our Q1 results demonstrate the continued efficacy of these actions.

Speaker #2: These actions are important examples of how we shape the portfolio. They allow us to stay on the right panels, preserve valuable options, and enhance the overall quality of the book.

Speaker #2: We've consistently used seeded reinsurance in the segment to manage risk and optimize returns and at 1-1 we found new attractive opportunities to increase these protections on long-tail lines of general and professional liability and specialty classes such as marine and energy.

Speaker #2: Improved margins will take time to emerge, but at the same time, we continue to benefit from the investment income generated by float on casualty reserves.

Speaker #2: Even in a period when underwriting margins and casualty remain tight, the business continues to support book value growth and general returns. Before I close, I want to address the war in the Middle East.

Speaker #2: Today we see 20% of casualty and specialty premiums compared to 13% a year ago. As in property, we see the entire market from an inwards and outwards perspective and are uniquely positioned to construct the optimal net portfolio.

Speaker #2: Based on what we know today, we do not believe the war will have a significant impact on our book for several reasons. First, we have low underwriting exposure to the region.

Speaker #2: These actions are important examples of how we shape the portfolio. They allow us to stay on the right panels, preserve valuable options, and enhance the overall quality of the book.

Speaker #2: Second, war is excluded from standard property policies. Finally, our potential exposure would come primarily from our specialty portfolio, specifically war, island, and marine war, and we purchased retrocessional protection on these portfolios.

Speaker #2: Improved margins will take time to emerge, but at the same time, we continue to benefit from the investment income generated by float on casualty reserves.

Speaker #2: War Island is a line where property damage from war is explicitly covered, modeled, and priced for. Some of the damaged hotels and refineries in the region have purchased this cover, but take-up rates and cover limits are relatively small compared to property policies.

David Marra: Our portfolio drove underwriting income of over $580 million, supported by a strong current accident year loss ratio of 53 and favorable prior year development across both segments. Let me cover our segments in more detail, starting with Property. As we discussed last quarter, the January 1 book saw Property Cat reinsurance rates down on average in the low teens for our portfolio. US accounts were down closer to 10%, and international and global accounts closer to 15%. At today's rates and favorable terms and conditions, Property Cat is still highly accretive with strong rate adequacy. We successfully deployed capital into this attractive market. We retained the majority of our portfolio and deployed $1 billion of new limit. This was a strong team effort, and it demonstrates our ability to access high-quality opportunities in a competitive but still very profitable market.

Speaker #2: So even in a period when underwriting margins and casualty remain tight, the business continues to support book value growth and shareholder returns. Before I close, I want to address the war in the Middle East.

Speaker #2: Marine war coverage is included in most marine policies, but can be canceled and repriced on 72 hours' notice. We have detailed information on locations and vessels that have been hit.

Speaker #2: Based on what we know today, we do not believe the war will have a significant impact on our book for several reasons. First, we have low underwriting exposure to the region.

Speaker #2: Second, war is excluded from standard property policies. Finally, our potential exposure would come primarily from our specialty portfolios, specifically war on land and marine war, and we purchased retrocessional protection on these portfolios.

Speaker #2: We'll continue to monitor developments closely as the war evolves. Stepping back, we continue to manage our underwriting portfolio to generate attractive returns. Even in a competitive market, we are growing our economics are attractive and reducing where they are not.

Speaker #2: That discipline supports all three of our drivers of profit: property is contributing mostly through underwriting income and fee income, while casualty and specialty is contributing mostly through fee income and investment income.

Speaker #2: War on land is a line where property damage from war is explicitly covered, modeled, and priced for. Some of the damaged hotels and refineries in the region have purchased this cover, but take-up rates and coverage limits are relatively small compared to property policies.

Speaker #2: All of these factors support strong shareholder returns and sustainable earnings power, and with that, I'll turn it back to Kenny.

David Marra: As a result, gross written premiums in Property Catastrophe, our highest margin business, were roughly flat, down only 3% from Q1 2025, excluding reinstatement premiums. Specifically, we deployed additional limit by focusing on two main areas. First, we grew on accounts and layers with the most attractive margins, such as select California deals impacted by the wildfires and certain nationwide accounts. Second, we grew with several large US clients, where we captured new demand on business which remains highly rate adequate. Global accounts and international business experienced more rate pressure than the US portfolio. These accounts remain attractive due to the diversified portfolios we maintain with them and the pipeline of renewable business they represent. We also saw opportunities in the retro market to purchase additional protection at attractive terms. Ceded rates were down high teens across our portfolio.

Speaker #2: Marine war coverage is included in most marine policies but can be canceled and repriced on 72 hours' notice. We have detailed information on locations and vessels that have been hit and will continue to monitor developments closely as the war evolves.

Speaker #3: Thanks, David. In closing, this was a strong quarter and another good example of earnings power and resilience of our business. Each driver of profit performed well.

Speaker #2: Stepping back, we continue to manage our underwriting portfolio to generate attractive returns. Even in a competitive market. We are a growing economics are attractive and reducing where they are not.

Speaker #3: Underwriting was especially strong, including excellent current, actionable development. Fee income exceeded expectations. Net investment income remained robust with stronger reinvestment economics supporting future earnings power.

Speaker #2: That discipline supports all three of our drivers of profit: property is contributing mostly through underwriting income and fee income while casualty and specialty is contributing mostly through fee income and investment income.

Speaker #3: And we repurchased shares in a disciplined way while maintaining a strong capital and liquidity position. Taken together, this quarter demonstrated what Renaissance Re was built to do: generate attractive returns, across environments, by combining underwriting expertise, third-party capital management, and investment capability.

Speaker #2: All of these factors support strong shareholder returns and sustainable earnings power. And with that, I'll turn it back to Kevin.

Speaker #1: Thanks, David. In closing, this was a strong quarter and another good example of the earnings power and resilience of our business. Each driver of profit performed well.

Speaker #3: Three diversified drivers of profit rather than any single one, allow us to deliver more consistent earnings through the cycle. And we could produce even three years ago.

David Marra: We are a significant buyer of retrocessional protection and our first call for purchasing opportunities, similar to our position in the inwards book. In addition, we upsized our Mona Lisa cat bond at significantly more attractive terms and conditions. Looking ahead, we are making good progress on the US mid-year renewals. We've already bound about half of our US mid-year portfolio, and roughly half of that has been on private terms. The Florida market continues to benefit from strong pricing, reduced social inflation due to tort reform, and robust terms and conditions. As a result of this improved environment, policies at Citizens are at a record low. The shift from public to private markets benefits the entire distribution chain, including increasing demand for reinsurance. We grew in Florida through the Validus acquisition and organically in 2025.

Speaker #1: Underwriting was especially strong, including excellent current, accident year performance, and significant favorable development. Fee income exceeded expectations. Net investment income remained robust with stronger reinvestment economics supporting future earnings power.

Speaker #3: The market remains competitive, but opportunities remain attractive. Most importantly, we remain focused on the same objective that guides our decisions every quarter: grow earnings, compound book value over term, and creating long-term value for our shareholders.

Speaker #1: And we repurchased shares in a disciplined way while maintaining a strong capital and liquidity position. Taken together, this quarter demonstrates what Renaissance Re was built to do: generate attractive returns across environments by combining underwriting expertise, third-party capital management, and investment capability.

Speaker #3: And with that, we'll open it up for questions. Thank you.

Speaker #1: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star two.

Speaker #1: We remind you to please unmute your line when introduced and, if possible, pick up your handset for optimal sound quality. End the interest of time.

Speaker #1: Three diversified drivers of profit rather than any single one allow us to deliver more consistent earnings through the cycle. And we could have produced even three years ago.

Speaker #1: We ask that you please limit yourself to one question and one follow-up. And we'll take our first question from a lead screen span with Wells Fargo.

David Marra: I feel confident in the current positioning of our portfolio and our ability to access profitable business from existing programs and new demand in Q2. In Other Property, we continue to shape the book to reduce peak exposure while preserving attractive margins. The business is performing well with strong current and prior year loss ratios, reflecting the quality of our underwriting decisions and our disciplined management of the book. Terms and conditions remain strong. Pricing is under more pressure. We are trimming exposure in the most pressured areas and improving expected net profitability through ceded reinsurance. Turning to casualty and specialty, market conditions are a continuation of what we experienced at one-one. We see ongoing rate increases in general liability, which are necessary in order to keep pace with loss trend. We see increased competition in specialty and credit lines in response to recent profitability.

Speaker #4: Hi, thanks. Good morning. My first question is on the mid-year renewals. I was hoping I guess it's a couple parts, right? You guys said I think you bound around half of the US book already.

Speaker #1: The market remains competitive, but opportunities remain attractive. Most importantly, we remain focused on the same objective that guides our decisions every quarter: grow earnings, compounding book value over term, and creating long-term value for our shareholders.

Speaker #4: So, I was hoping to get a sense of the pricing you saw on what's been bound, and expectations on the remainder that will be bound between now and mid-year.

Speaker #1: And with that, we'll open it up for questions. Thank you.

Speaker #3: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star two.

Speaker #4: And are you guys observing any changes in demand across that renewal?

Speaker #3: Hey, Elise, this is David. I think the Q2 deal that we've seen so far is pretty much a continuation of what we saw in Q1.

Speaker #3: We remind you to please unmute your line when introduced and, if possible, pick up your handset for optimal sound quality. End the interest of time, we ask that you please limit yourself to one question and one follow-up.

Speaker #3: In Q1, our rates were down in the teens of the portfolio, but that was split between closer to 10% for US CAT and closer to 15% for international globals.

Speaker #3: And we'll take our first question from Elise Greenspan with Wells Fargo.

David Marra: We've been optimizing the casualty and specialty book through risk selection, portfolio mix, and greater use of ceded reinsurance. Our team has done a fantastic job of underwriting our clients' business across the various classes they purchase. This is especially important for the casualty and specialty business, as it allows us to pick the best deals within each class and construct a more diversified portfolio. In general liability, we have reduced on deals which are most exposed to social inflation. Our exposure to this class is down 40% over the last two years, but premiums are down significantly less because of rate increases. In addition, we have been proactively shifting the portfolio mix to weight the best returning business, with specialty and credit now making up more than half of the portfolio. We've consistently used ceded reinsurance in the segment to manage risk and optimize returns.

Speaker #3: So we've seen that mostly continue. Into the Q2, we're still seeing a lot of opportunities for private terms. You recall last year Q2, there was a lot of Florida business that we were able to access a lot of private terms.

Speaker #4: Hi. Thanks. Good morning. My first question is on the mid-year renewals. I was hoping I guess it's a couple of parts, right? You guys said I think you bound around half of the US book already.

Speaker #3: We were able to do these early renewals as lots of our capacity early at terms better than the market and clients were able to fill out the placement from there.

Speaker #4: So I was hoping to get a sense of the pricing you saw on what's been bound, expectations, right, on the remainder that will be bound between now, right, and the mid-years.

Speaker #3: So, we're really encouraged by how the team has been able to engage in that. New demand is actually higher than we thought at 1/1.

Speaker #3: If you go back a little bit, we were saying $20 billion of new demand in 2024, $50 billion in 2025, and we thought $10 billion was our estimate for 2026.

Speaker #4: And then are you guys observing any changes in demand across that renewal?

Speaker #3: That's looking closer to $15 billion now, but we won't know until all the Q2s are done. We're seeing really good opportunities across normal Q2s and the Florida book. That growth in demand, I'd also add, is from a lot of core personal lines clients, which are buying new reinsurance because of that growth in TIV and keeping up their programs with inflation.

Speaker #5: Hey, Elise. This is David. So I think the Q2 deals that we've seen so far is pretty much a continuation of what we saw in Q1.

Speaker #5: In Q1, our rates were down mid-teens of the portfolio, but that was split between closer to 10% for USCAT and closer to 15% for international and globals.

David Marra: At one-one, we found new attractive opportunities to increase these protections on long-tail lines of general and professional liability and specialty classes, such as marine and energy. Today, we see 20% of Casualty and Specialty premiums compared to 13% a year ago. As in property, we see the entire market from an inwards and outwards perspective and are uniquely positioned to construct the optimal net portfolio. These actions are important examples of how we shape the portfolio. They allow us to stay on the right panels, preserve valuable options, and enhance the overall quality of the book. Improved margins will take time to emerge, but at the same time, we continue to benefit from the investment income generated by float on casualty reserves. Even in a period when underwriting margins and casualty remain tight, the business continues to support book value growth and shareholder returns.

Speaker #3: So, really good combination for us to deploy capital into that.

Speaker #5: So we've seen that mostly continue. Into the Q2, we were still seeing a lot of opportunities for private terms. If you recall, last year Q2, there was a lot of Florida business that we were able to access a lot of private terms.

Speaker #4: Thanks. Then my second question, you did give us a sense of how much losses you booked for Iran in the quarter and I'm assuming the all states within the specialty casualty segment within the combined ratio there.

Speaker #5: What we're able to do with these early renewals is lock up our capacity early at terms better than the market and the clients are able to fill out the placement from there.

Speaker #4: And then, would you expect to book additional losses in Q2?

Speaker #5: So we're really encouraged by how the team's been able to engage in that. New demand is actually higher than we thought at 1.1. If you go back a little bit, we were saying $20 billion of new demand in 2024, $15 billion in 2025, and we thought $10 billion was our estimate for 2026.

Speaker #3: So let me start there. As David mentioned, we're generally somewhat underexposed to the lines that are most exposed to the Iran war. We have good transparency on the ships that were hit in the other on-land target properties as well.

Speaker #5: That's looking closer to $15 billion now, but we won't know until all the Q2s are done. So we're seeing really good opportunities across the normal Q2s and the Florida book.

David Marra: Before I close, I want to address the war in the Middle East. Based on what we know today, we do not believe the war will have a significant impact on our book for several reasons. First, we have low underwriting exposure to the region. Second, war is excluded from standard property policies. Finally, our potential exposure would come primarily from our specialty portfolio, specifically war on land and marine war, and we purchase retrocessional protection on these portfolios. War on land is a line where property damage from war is explicitly covered, modeled, and priced for. Some of the damaged hotels and refineries in the region have purchased this cover, but take-up rates and coverage limits are relatively small compared to property policies. Marine war coverage is included in most marine policies but can be canceled and repriced on 72 hours' notice.

Speaker #3: And those are all reserved in our portfolio. Additionally, we are being cautious in thinking about the uncertainty from the ongoing war and being cautious about releasing IBNR within the casualty specialty segment.

Speaker #5: That growth in demand, I'd also add, is from a lot of core personal lines clients, which are buying new reinsurance because they have growth in TIV and keeping up their programs with inflation.

Speaker #5: So really good combination for us to deploy capital into that.

Speaker #3: The losses are within Specialty. They are within Marine, and Marine Energy. But it is fully reflected. If more happens in the second quarter, we'll have to reflect that in the second quarter.

Speaker #4: Thanks. And then my second question, can you just give us a sense of how much losses you booked for Iran in the quarter? And I'm assuming that all stays within the specialty casualty segment.

Speaker #3: But we feel good about where we are. It's really just a couple of points into the casualty specialty segment, but it doesn't foreshadow what could be happening going forward.

Speaker #4: Within the combined ratio there. And then would you expect to book additional losses in the Q2?

Speaker #4: Thank you.

Speaker #1: So let me start there. As David had mentioned, we're generally somewhat under exposed to the lines that are most exposed to the Iran war.

Speaker #1: Thank you. And we'll take our next question from Josh Shankar. What's Bank of America?

David Marra: We have detailed information on locations and vessels that have been hit and will continue to monitor developments closely as the war evolves. Stepping back, we continue to manage our underwriting portfolio to generate attractive returns, even in a competitive market. We are growing where economics are attractive and reducing where they are not. That discipline supports all three of our drivers of profit. Property is contributing mostly through underwriting income and fee income, while Casualty and Specialty is contributing mostly through fee income and investment income. All these factors support strong shareholder returns and sustainable earnings power. With that, I'll turn it back to Kevin.

Speaker #5: Yeah, thank you for taking my question. So, on your prepared remarks, you spoke about the offering expense ratio moving to somewhere around 5.5%. You said on the last conference call that you were talking about 5.5.

Speaker #1: We have good transparency on the ships that were hit and the other on-land targeted properties as well. And those are all reserved within our portfolio.

Speaker #1: Additionally, we are being cautious in thinking about the uncertainty from the ongoing war and being cautious about releasing IBNR within the casualty specialty segment.

Speaker #5: Did 4.1 this quarter? I guess a few questions. Number one, that's a lot of money, $150 basis points. In any expense, where are you investing in?

Speaker #5: And two, don't you get the offsetting tax benefit from net pushing that down, at the same time you're guiding investors to think it's going to rise?

Speaker #1: The losses are within the specialty. They are within marine. And marine energy. But it is fully reflected. If more happens in the second quarter, we'll have to reflect that in the second quarter.

Kevin O'Donnell: Thanks, David. In closing, this was a strong quarter and another good example of the earnings power and resilience of our business. Each driver of profit performed well. Underwriting was especially strong, including excellent current accident favorable development. Fee income exceeded expectations. Net investment income remained robust, with stronger reinvestment economics supporting future earnings power. We repurchased shares in a disciplined way while maintaining a strong capital and liquidity position. Taken together, this quarter demonstrate what RenaissanceRe was built to do, generate attractive returns across environments by combining underwriting expertise, third-party capital management, and investment capability. Three diversified drivers of profit rather than any single one allow us to deliver more consistent earnings through the cycle, than we could have produced even three years ago. The market remains competitive, opportunities remain attractive.

Speaker #6: Doug, thanks for the question. I did address in the prepared comments, but let me expand a little bit more. The 4.1% that you saw in the first quarter was down because of some one-time items that came through.

Speaker #1: But we feel good about where we are. It's really just a couple of points into the casualty specialty segment. But it doesn't foreshadow what could be happening going forward.

Speaker #6: Typically, non-recurring in the first quarter. The core is probably closer to mid-4%, maybe mid-4 plus. Maybe mid-4.6% that we have up there. Yes, we are investing in this.

Speaker #4: Thank you.

Speaker #3: Thank you. And we'll take our next question from Josh Shankar with Bank of America.

Speaker #6: Here's how I see it. 4.5%, 5% is a relatively—very relatively—low expense ratio relative to the industry. So we feel good about that.

Speaker #1: Yeah. Thank you for taking my question. So in Bob's prepared remarks, he spoke about the operating expense ratio moving to somewhere around 5.5%. You said on the last conference call that you said we're talking 5, 5.5.

Speaker #6: That gives us the opportunity to invest in people and our platform to be able to operate at scale. And we will continue to operate at scale.

Speaker #6: We're specifically, we're building out a new front office system for REMs that we've talked about before. So these are significant investments. And we expect to continue over time to grow, so we need that operational expense base to be there.

Speaker #1: You did 4.1 this quarter. I guess a few questions. Number one, that's a lot of money, $150 basis points. In annual expenses, what are you investing in?

Speaker #6: And yes, we do get and for expenses that we incur in Bermuda, we will get that tax credit relative to the people and what we invest in non-people.

Speaker #1: And two, don't you get the offsetting tax benefit from the payroll tax adjustment? And isn't that pushing that down at the same time you're guiding investors think it's going to rise?

Speaker #6: So we did reflect whatever we're investing will come in as a small offset to it. And I did also say we expect to grow into the course of the year.

Kevin O'Donnell: Most importantly, we remain focused on the same objective that guides our decisions every quarter: grow earnings, compounding book value over term, and creating long-term value for our shareholders. With that, we'll open it up for questions. Thank you.

Speaker #5: Josh, thanks for the question. I did address in the prepared comments, but let me expand a little bit more. The 4.1% that you saw in the first quarter was down because of some one-time autumn items that came through.

Speaker #6: Okay? So the graph.

Speaker #3: Oh, okay. So 5.5% is not your targeted 2026 expense ratio. You expect it to creep towards 5.5% through year-end.

Speaker #6: 5 to 5.5. We have control over that in terms of how we spend it, but it will grow.

Speaker #5: Typically, non-recurring in the first quarter. The core is probably closer to mid-4%, maybe mid-4 plus, maybe mid-4.6% that we have out there. Yes, we are investing in the business.

Operator: Thank you. We'll take our first question from Elyse Greenspan with Wells Fargo.

Speaker #3: And are these one-time expenses or is this like an investment in capabilities that will model between 2027, or do you guess it can be the new normal?

Speaker #5: Here's how I see it. 4.5%, 5% is relatively as a very relatively low expense ratio relative to the industry. So we feel good about that.

Speaker #6: People are part of our run rate. When we build out the system in REMs, that's a non-recurring over time.

Speaker #3: Okay. Thank you very much. Thanks.

Speaker #5: That gives us the opportunity to invest in people and our platform to be able to operate at scale. And we will continue to operate at scale.

Speaker #1: Thank you. And we'll take our next question from Mike Zarembski with BMO.

Elyse Greenspan: Hi, thanks. Good morning. My first question is on the mid-year renewals. I was hoping, I guess it's a couple parts, right? You guys said, I think you bound around half of the US book already. I was hoping to get a sense of the pricing you saw on what's been bound, expectations, right, on the remainder that will be bound between now and the midyears. Are you guys observing any changes in demand across that renewal?

Speaker #5: We're specifically, we're building out a new front office system for REMS that we've talked about before. So these are significant investments. And we expect to continue over time to grow, so we need that operational expense base to be there.

Speaker #7: Hey, great. Thanks. Going back to the commentary about specialty segments—the net growth is changing, and it sounds like that's a permanent change. So, there was no guidance change on the combined ratio for that segment.

Speaker #5: And yes, we do get for expenses that we incur in Bermuda, we will get that tax credit relative to the people and what we invest in non-people.

Speaker #5: So we did reflect whatever we're investing will come in as a small offset to it. And I did, it's also say we expect to grow into this over the course of the year, okay?

Speaker #7: So, just curious how we should think about it. Are you laying off just more tail risk? I know that segment, especially on the marine side, had some cats in recent years, even though I don't know if cats are embedded within the high-90s guidance for that segment too.

Speaker #5: So it's a gradual.

Speaker #1: Oh, okay. So 5.5% is not your targeted 2026 expense ratio. You expect it to creep towards 5.5% through year-end.

David Marra: Hey, Elyse, this is David. Yeah, the Q2 deals that we've seen so far is pretty much a continuation of what we saw in Q1. You know, in Q1 our rates were down mid-teens as a portfolio, but that was split between closer to 10% for US CAT and closer to 15% for international and globals. We've seen that mostly continue. You know, into Q2 we were still seeing a lot of opportunities for private terms. If you recall last year, Q2, there was a lot of Florida business that we were able to access a lot of private terms. What we're able to do with these early renewals is, you know, lock up our capacity early at terms better than the market, and the clients are able to fill out the placement from there.

Speaker #5: 5 to 5.5. We have control over that in terms of how we spend it. But it will grow.

Speaker #7: Thanks.

Speaker #1: And are these one-time expenses or are these is this like an investment in capabilities that will moderate in '27? Or do you think that's going to be the new normal?

Speaker #3: Hey, Mike, this is David. I'm going to address what we're doing for underwriting perspective on that. So first of all, in the casualty and specialty segment, we've used seated for many years.

Speaker #3: If you go back about 10 years, we seated about 30, 28, 30% of the book. So this is in the normal order of how we use 'seated' to shape the portfolio.

Speaker #5: People are part of our run rate. We build out a system in REMS. That's a non-recurring over time.

Speaker #1: Okay. Thank you very much. Thanks.

Speaker #3: We see the whole market in words and hours. We're able to make those trades and construct the portfolio with all that in mind. The types of seated that we've grown into has been more quota share on the long-tail book.

Speaker #3: Thank you. And we'll take our next question from Mike Zarembski with BMO.

Robert Qutub: We're really encouraged by how the team's been able to engage in that. New demand is actually higher than we thought at one-one. If you go back a little bit, we were saying $20 billion of new demand in 2024, $15 billion in 2025, and we thought $10 billion was our estimate for 2026. That's looking closer to $15 billion now, but we won't know until, you know, all the Q2s are done. We're seeing really good opportunities across the normal Q2s and the Florida book. You know, that growth in demand I'd also add is from a lot of core personal lines clients, which are buying new reinsurance because they have growth in TIV and keeping up their programs with inflation. Really good combination for us to deploy capital into that.

David Marra: We're really encouraged by how the team's been able to engage in that. New demand is actually higher than we thought at one-one. If you go back a little bit, we were saying $20 billion of new demand in 2024, $15 billion in 2025, and we thought $10 billion was our estimate for 2026. That's looking closer to $15 billion now, but we won't know until, you know, all the Q2s are done. We're seeing really good opportunities across the normal Q2s and the Florida book. You know, that growth in demand I'd also add is from a lot of core personal lines clients, which are buying new reinsurance because they have growth in TIV and keeping up their programs with inflation. Really good combination for us to deploy capital into that.

Speaker #3: And on the marine and energy book, we've bought more access to loss with broader coverage. So those are the two things. They perform distinctly different roles.

Speaker #6: Hey, great. Thanks. Going back to the commentary about specialty segments, the net to gross, kind of changing, it sounds like that's a permanent change but there was no guidance change on the kind of combined ratio in that segment.

Speaker #3: The quota share provides risk income, and in the short term, but also provides protection if losses deteriorate. And on the energy side, it would provide some protection for events such as the Iran war to the extent that those might grow.

Speaker #3: So it's really an effective way to position the portfolio and that's what we're accomplishing now on it. And we'll continue to we expect to continue to see opportunities throughout the year as capacity comes into the market.

Speaker #6: So just curious how we should think about it. Are you laying off just more tail risk? I know that segment, especially on the marine sides, had some cats in recent years, even though I don't know if cats are embedded within the high 90s guidance for that segment too.

Elyse Greenspan: Thanks. My second question, can you just give us a sense of how much losses you booked for Iran in the quarter? I'm assuming that all stays within the specialty casualty segment within the combined ratio there. Would you expect to book additional losses in the Q2?

Speaker #3: And the year develops.

Speaker #7: Got it. That's helpful. And then switching to the investment portfolio, Bob, you talked about some fairly material changes on, I think we'll have to kind of go through the transcript.

Speaker #6: Thanks.

Speaker #7: Hey, Mike. This is David. I can address what we're doing from an underwriting perspective on that. So first of all, in the casualty and specialty segment, we've used seeded for many years.

Speaker #7: But I guess at a high level, just want to confirm—moving gold, or sorry, taking profits in gold, puts a chunk of additional assets into the fixed income bucket, which probably extended duration.

Kevin O'Donnell: Let me start there. The, you know, as David had mentioned, we're generally somewhat underexposed to the lines that are most exposed to the Iran war. We have good transparency on the ships that were hit and the other, the other on land, targeted properties as well, and those are all reserved within our portfolio. Additionally, we are being cautious in thinking about the uncertainty from the ongoing war and being cautious about releasing IBNR within the casualty specialty segment. The losses are within specialty. They are within marine and marine energy. But it is fully reflected. If more happens in Q2, we'll have to reflect that in Q2, but we feel good about where we are.

Speaker #7: If you go back about 10 years, we seeded about 30, 28, 30% of the book. So this is in the normal course of how we use seeded to shape the portfolio.

Speaker #7: So we should add an additional bump to the fixed income line rate from that reallocation, or are there other more moving parts that we should be thinking about?

Speaker #7: We see the whole market inwards and outwards. So we're able to make those trades and construct the portfolio with all that in mind. The types of seeded that we've grown into has been more quota share on the long tail book.

Speaker #6: Thank you for the question. I did try. There was a lot going on in the portfolio, but if we really break it down, it comes in probably three, kind of the same, buckets.

Speaker #7: And on the marine and energy book, we've bought more excess of loss with broader coverage. So those are the two things. They perform distinctly different roles.

Speaker #6: One is the gold we reduced. I mean, it's kind of been pointed out in this prepared comment. We knew that was going to be a good hedge.

Speaker #6: The value just created to us faster. So we reduced the exposure. We still have a small piece of gold in our portfolio, which we think is a pretty good allocation across our investment guidelines that we have internally.

Speaker #7: The quota share provides risk income, and in the short term, but it also provides protection if losses deteriorate. And on the energy side, it would provide some protection for events, say, such as the Iran war to the extent that those might grow.

Speaker #6: Second is, we focus on the structure of the portfolio, kind of holding in a higher rate for longer. My comment about reducing short-term Treasuries that have high yield and moving that out to investment-grade credit in a significant way allowed us to extend that and lock it in—hence, the duration increase.

Speaker #7: So it's a really effective way to position the portfolio. And that's what we're accomplishing now on it. And we'll continue to we expect to continue to see opportunities throughout the year as capacity comes into the market and the year develops.

Kevin O'Donnell: It's really just a couple points into the casualty specialty segment, but it doesn't foreshadow what could be happening going forward.

Elyse Greenspan: Thank you.

Speaker #6: And therefore, we have a higher credit quality and gave us an impact to our new money yield that went from 4.8 to 5.1. So that we saw was a good structure and long-term position.

Operator: Thank you. We'll take our next question from Josh Shanker with Bank of America.

Speaker #1: Got it. That's helpful. And then switching to the investment portfolio, Bob, you talked about some fairly material changes. So I'm going to, I think, we'll all have to kind of go through the transcript.

Josh Shanker: Yeah, thank you for taking my question. So in Bob's prepared remarks, he spoke about the operating expense ratio moving to somewhere around 5.5%. You said on the last conference call that you said you were targeting 5.5. You did 4.1 this quarter. I guess a few questions. Number one, that's a lot of money, 150 basis points in annual expenses. What are you investing in? Two, don't you get the offsetting tax benefit from the net pushing that down at the same time you're guiding investors think it's gonna rise?

Speaker #6: And we wanted to clarify the importance of private credit to our investment portfolio. We feel good about it. I think that's what I was trying to share in the comment.

Speaker #1: But I guess at a high level, I just want to confirm moving gold or, sorry, taking profits in gold puts a good chunk of additional assets into the fixed income bucket, which probably extended duration.

Speaker #6: But break it down to really those three areas with an outcome of a little bit longer duration and overall a higher yield that you'll start to see trending in the next quarter.

Speaker #7: And Bob, just quickly, if you can move further in private credit, opportunistically, what, just roughly, what type of yields are you seeing?

Speaker #1: So we should add an additional bump to the fixed income run rate from that reallocation? Or are there other more moving parts that we should be thinking about?

Speaker #6: We don't really share. We are capturing liquidity that we get above the investment-grade positions out there, which can range from 2 to 300 basis points.

Speaker #5: I think that thanks for the question. I did try. There was a lot going on in the portfolio. But when you really break it down, it comes in probably three kind of distinct buckets.

Robert Qutub: Josh, thanks for the question. I did address in the prepared comments, but let me expand a little bit more. The 4.1% that you saw in Q1 was down because of some one-time items that came through typically non-recurring in Q1. The core is probably closer to mid-4%, maybe mid-4% plus, maybe mid-4.6% that we have out there. Yes, we are investing in the business. Here's how I see it. 4.5%, 5% is a very relatively low expense ratio relative to the industry. We feel good about that. That gives us the opportunity to invest in people and our platform to be able to operate at scale, and we will continue to operate at scale.

Speaker #6: And then we have, because it's hard to look at it, because when you think about it, we've got direct lending, we've got distressed, and we've got secondary.

Speaker #5: One is the gold we reduced. I mean, as Kevin pointed out in his prepared comments, we knew that was going to be a good hedge.

Speaker #6: And they have different return profiles over time, so they're all performing within our expectations—in some cases, exceeding.

Speaker #5: The value just accreted to us faster. So we reduced the exposure. We still have a small piece of gold in our portfolio, which we think that's a prudent allocation across our investment guidelines that we have internally.

Speaker #1: And our next question comes from Andrew Anderson with Jefferies.

Speaker #5: Second is we focused on the structure of the portfolio, kind of holding in a higher rate for longer. My comment about reducing short-term treasuries that had a high yield and moving that out to investment-grade credit in a significant way allowed us to extend that and lock it in, hence the duration increased.

Speaker #8: Hey, good morning. On the new demand adjuvant, is that skewing towards more traditional layers versus aggregate covers? And of the aggregate business, what is the appetite to write that?

Speaker #3: So, the new demand has been—I think the most important thing from our perspective is the quality of the pricing, the quality of the overall risk, and the quality of the buyer.

Robert Qutub: Specifically, we're building out a new front office system for REMS that we've talked about before. These are significant investments, and we expect to continue over time to grow, so we need that operational expense base to be there. Yes, we do get for expenses that we incur in Bermuda, we will get that tax credit relative to the people and what we invest in non-people. We did reflect whatever we're investing will come in as a small offset to it. I did also say we expect to grow into this over the course of the year, okay? It's a gradual investment-

Speaker #5: And therefore, we have a higher credit quality and gave us an impact to our new money yield that went from 4.8 to 5.1. So that we saw was a good structure and a long-term position.

Speaker #3: So we've seen demand come from sustained buyers, the nationwide personalized companies, which are a core client base for us. There are some aggregate programs there.

Speaker #5: And then we wanted to clarify the importance of private credit to our investment portfolio. We feel good about it. And I think that's what I was trying to share in the comments.

Speaker #3: I think our view on aggregate is that there's good aggregates and bad aggregates. The aggregates that are placed in the market now, and the ones that we write as part of our portfolio, are well-structured.

Speaker #5: So if you break it down, it's really those three areas with an outcome of a little bit longer duration, an overall higher yield that you'll start to see trending in next quarter.

Speaker #3: They're attached to the capital level of the earnings level. They're also well-priced. And the level of traditional losses is really well understood by the market at this point.

Speaker #6: And Bob, just quickly, if you move further into private credit, opportunistically, what just roughly, what type of yields are you seeing?

Josh Shanker: Okay, 5.5% is not your targeted 2026 expense ratio. You expect it to creep towards 5.5% through year-end.

Speaker #3: So they do make an attractive piece of the overall tower. But our approach to that new demand, we're a go-to-market on the middle and bottom end regardless of whether there's an aggregate program in there.

Speaker #5: We don't really share. We are capturing the liquidity premium that we get above the investment-grade positions out there, which can range from 2 to 300 basis points.

Robert Qutub: 5 to 5.5. We have control over that, you know, in terms of how we spend it, but it will grow.

Speaker #3: So we can secure a line there and then use efficient capital sources to play on the top end as well and provide that one-stop shop across the board and then have really attractive returns on that meat of the program for every shareholder.

Josh Shanker: Are these one-time expenses or are these, is this like a investment in capabilities that will moderate in 2027, or do you think that's gonna be the new normal?

Speaker #5: And then we have because it's hard to look at it because when you think about it, we've got direct lending, we've got distressed, and we've got secondary.

Robert Qutub: People are part of our run rate. You know, when we build out a system in REMS.

Speaker #8: Thanks. And on other property, can you maybe just talk about how durable the mid-50s traditional loss ratio there is as competition increases on that line?

Speaker #5: And they have different return profiles over time. So they're all performing within our expectations in some cases, exceeding them.

Josh Shanker: All right.

Robert Qutub: That's a non-recurring over time.

Josh Shanker: All right.

Robert Qutub: That's a non-recurring over time.

Josh Shanker: Okay. Thank you very much. Thanks.

Speaker #3: This is David. I can talk about what we're seeing in the market. So, we've—the other property has had really good performance. It's had several years of sustained rate increases.

Operator: Thank you. We'll take our next question from Michael Zaremski with BMO.

Speaker #3: And our next question comes from Andrew Anderson with Jefferies.

Speaker #1: Hey, good morning. On the new demand at June, is that skewing towards more traditional layers versus aggregate covers? And of the aggregate business, what is the appetite to write that?

Speaker #3: And improvements in terms and conditions. The rate is coming under pressure, but terms and conditions are still holding. And we've seen favorable claims trends.

Michael Zaremski: Hey, great. Thanks. Going back to the commentary about specialty segments, the net to gross kind of changing. It sounds like that's a permanent change. There was no guidance change on the kind of combined ratio in that segment. Just curious how we should think about it. Are you laying off just more tail risk? I know that segment, especially on the marine side, had some cats in recent years. Even though I don't know if cats are embedded within the high 90s guidance for that segment too. Thanks.

Speaker #3: With the current pressure rates, we have shifted some of the capacity there. We've taken some risk off the table, finding it better priced in the capital mainly.

Speaker #7: So the new demand has been, I think, the most important thing from our perspective is the quality of the pricing, the quality of the overall risk, and the quality of the buyer.

Speaker #3: Some Florida risk there. So we have confidence in continued sustained returns on the other property, but we have options to manage through some of the softening.

Speaker #7: So we've seen demand come from sustained buyers, the nationwide personal lines companies, which are a big core client base for us. There are some aggregate programs in there.

Speaker #3: But I'll let Bob comment on the going forward.

Speaker #6: Yeah. This is Bob. As I said, my prepared comment, mid-50s is where we feel comfortable given the mix of the portfolio. I mean, it'll have some ups and downs based on large events that come through.

Speaker #7: I think our view on aggregate is that there is good aggregates and bad aggregates. The aggregates that are placed in the market now and the ones that we write as part of our portfolio are well-structured.

Speaker #6: But right now, mid-50s, I think 55 plus or minus is kind of where I think about it.

Speaker #8: Thank you.

Speaker #1: Thank you. And our next question comes from Mayor Shields with KBW.

Speaker #7: They're attaching it to capital level, not the earnings level. They're also either well-priced. And the level of attritional losses is really well understood by the market at this point.

David Marra: Hey Mike, this is David. I can address what we're doing from an underwriting perspective on that. You know, first of all, in the casualty and specialty segment, we've used ceded for many years. You know, if you go back, about 10 years, we ceded about 30%, 28%, 30% of the book. This is in the normal course of how we use ceded to shape the portfolio. We see the whole market inwards and outwards, we're able to make those trades and construct the portfolio with all that in mind. The types of ceded that we've grown into, it's been more quota share on the long tail book. On the marine and energy book, we've bought more excess of loss with broader coverage. Those are the two things.

Speaker #7: Thanks so much. When we say about this year's pricing for Florida at mid-year, is there any reduction in maybe the provision for initial skepticism over how well the reforms were going to work?

Speaker #7: So they do make an attractive piece of the overall tower. But our approach to that new demand, what we're a go-to market on that middle and bottom end, regardless of whether there's an aggregate program in there.

Speaker #7: In other words, besides risk asset pricing, is there another discount working its way into pricing, or is that not relevant?

Speaker #7: So we can secure our line there and then use efficient capital sources to play on the top end as well and provide that one-stop shop across the board and then have really attractive returns on that meat of the program for rent-re shareholders.

Speaker #3: So I think often we talk in terms of risk-adjusted pricing. So I would say that if we look back at our credit for the reforms when they were originally put into place, we have seen more tangible benefit.

Speaker #1: Thanks. And on other property, can you maybe just talk about how durable the mid-50s attritional loss ratio there is as competition increases on that line?

David Marra: They perform distinctly different roles. You know, the quota share provides risk income in the short term, but it also provides protection if losses deteriorate. On the energy side, it would provide some protection for events, say, such as the Iran war, to the extent that those might grow. It's a really effective way to position the portfolio. That's what we're accomplishing now on it. We expect to continue to see opportunities throughout the year as capacity comes into the market, and the year develops.

Speaker #3: From the reforms, which is coming into pricing, but I would say that the overall economics within Florida are reducing a comparable level to what we saw on one.

Speaker #7: This is David. I can talk about what we're seeing in the market. So we've the other property has had really good performance, has had several years of sustained rate increases.

Speaker #3: And the portfolio is extremely well-rated. I think we've got good flexibility to leverage into the market. We're finding new opportunities growing in Florida to give you some sense as to how much we like it.

Speaker #7: And improvements in terms and conditions. The rate is coming under pressure, but terms and conditions are still holding. And we've seen favorable claims trends.

Speaker #3: David's comment, between other property and property debt right now, property debt is returning particularly in the Tri-County area, stronger returns than some of the other property and we've made some bits there.

Speaker #7: With the current pressure on rates, we have shifted some of the capacity there and taken some risk off the table, finding it better priced in the cat book, mainly some Florida risk there.

Michael Zaremski: Got it. That's helpful. Then switching to the investment portfolio, Bob, you talked about some fairly material changes, so I think we'll have to kind of go through the transcript. I guess at a high level, I just want to confirm, you know, moving gold or, sorry, taking profits in gold puts, you know, a good chunk of additional assets into the fixed income bucket, which probably extended duration. We should add an additional bump to the fixed income run rate from that reallocation? Or is there, are there other more moving parts that we should be thinking about?

Speaker #3: So we like the portfolio. We have begun to reforms, which I guess was warranted. And continue to think the market is highly agreed.

Speaker #7: So we have confidence in continued sustained returns. On the other property book, we have options to manage through some of the softening. But I'll let Bob comment on the going forward.

Speaker #7: Okay, that's very helpful. And then a question from Bob. So you get evidence for fees in the second quarter, but the portfolio has also noted some funds returned to some of your partners.

Speaker #5: Yeah, this is Bob. As I said in my prepared comments, mid-50s is where we feel comfortable given the mix of the portfolio. I mean, it'll have some ups and downs based on large events that come through.

Speaker #5: But right now, mid-50s, I think I said 55 plus or minus is kind of where I think about it.

Speaker #7: Does that have an impact in future quarters management fees?

Speaker #1: Thank you.

Speaker #3: Thank you. And our next question comes from Mayor Shields with KBW.

Speaker #3: Just making sure I get the question from Mayor. Correct me if I'm wrong. You're talking about the capital return we had this year for the ventures, the $730 million.

Speaker #8: Thanks so much. When we think about this year's pricing for Florida at mid-year, is there any reduction in maybe the provision for initial skepticism over how well the reforms were going to work?

Robert Qutub: I think, thanks for the question. I did try. There was a lot going on in the portfolio, but when you really break it down, it comes in probably three kind of distinct buckets. One is the gold we reduced. I mean, as Kevin pointed out in his prepared comments, we knew that was going to be a good hedge. The value just accreted to us faster, so we reduced the exposure, and we still have a small piece of gold in our portfolio, which we think that's a prudent allocation across our investment guidelines that we have internally. Second is we focused on the structure of the portfolio, kind of holding in a higher rate for longer.

Speaker #3: That's really a distribution that would be out there. Does it affect this year's performance? Now, we'll keep in each of the vehicles the capital we need to deploy versus currently in our expectations.

Speaker #8: In other words, besides risk-adjusted pricing, is there another discount working its way into pricing, or is that not relevant?

Speaker #3: I mean, we had a good year. I mean, they had a good year in 2025. You can see the MCI was 900 million plus that we earned.

Speaker #7: Yeah. So I think often we talk in terms of risk-adjusted pricing. So I would say that if we look back at our credit for the reforms when they were originally put into place, we have seen more tangible benefit.

Speaker #3: We're returning some of that back to our investors in those funds. So I think that's a good thing. That was the bulk of it, the 700.

Speaker #3: And we're positioned well for, as the underwriter, '26.

Speaker #2: Yeah. One thing I'd add to the vehicles are about the same size as this year's, last year's. This is really just returning earnings. And it's our normal process.

Speaker #7: From the reforms, which is coming into pricing, but I would say that the overall economics within Florida are reducing on a comparable level to what we saw at 1.1.

Robert Qutub: My comment about reducing short-term treasuries that had a high yield and moving that out to investment grade credit in a significant way allowed us to extend that and lock it in, hence the duration increased. Therefore, we have a higher credit quality and gave us an impact to our new money yield that went from 4.8% to 5.1%. That we saw was a good structure and a long-term position. Then we wanted to clarify the importance of private credit to our investment portfolio. We feel good about it, and I think that's what I was trying to share in the comments. If you break it down, it's really those three areas with an outcome of a little bit longer duration and overall a higher yield that you'll start to see trending in next quarter.

Speaker #2: We do it every year.

Speaker #7: Okay. Thanks so much. That helps.

Speaker #1: Thank you. And our next question comes from Pablo Singson with JPMorgan.

Speaker #7: And the portfolio is extremely well-rated. I think we've got good flexibility to leverage into the market. We're finding new opportunities to growing in Florida to give you some senses to how much we like it.

Speaker #9: Hi. Thank you. Most of my questions have been answered already. Sorry about that.

Speaker #7: David's comment, between other property, and property cat, right now, property cat is returning particularly in the Tri-County area, stronger returns than some of the other property.

Speaker #3: Sure.

Speaker #1: Thank you. And we'll move next to Ryan Dunitz with Cantor.

Speaker #10: Hi. So just one from me for Kevin. Kevin, I was hoping that you could just remind us of the history of RAN in terms of appetite for writing Florida domestic companies.

Speaker #7: And we've made some shifts there. So we like the portfolio. We have begun to give more recognition for the reforms, which I think is warranted.

Michael Zaremski: Bob, just quickly, if you move further into private credit, opportunistically, what, just roughly what type of yields are you seeing?

Speaker #7: And continue to think the market is highly accretive.

Speaker #10: I feel like at one point there were a good number, and then there were almost none, and maybe put that in perspective given where the health of the market is today.

Speaker #8: Okay. That's very helpful. And then a question for Bob. So you did guidance for fees in the second quarter. But the press release also noted some funds returned to some of your partners does that have an impact in future quarters management fees?

Robert Qutub: We don't really share. We are capturing the liquidity premium that we get above the investment grade positions out there, which can range from, you know, 200 to 300 basis points. We have.

Speaker #10: How do you compare that relative history in terms of your willingness—not just to write in terms of size, but just breadth of fields?

Michael Zaremski: Thank you.

Robert Qutub: It's hard to look at it 'cause when you think about it, we've got direct lending, we've got distressed, and we've got secondary, and they have different return profiles over time. They're all performing, within our expectations, in some cases exceeding them.

Speaker #10: Thank you.

Speaker #3: Yeah. I've been here almost 30 years. I've seen us participate in lots of different ways in the Florida market. We remain highly influential in the Florida market even today.

Speaker #7: Just make sure I got the question, Mayer, correct me. You're talking about the capital return we had this year for the joint ventures, the $730 million.

Speaker #3: Although it is a much smaller percent of our overall premium, I can reflect back into early 2000s, probably late '90s, where that was about 30% of our premium coming from Florida, broadly participating, highly structured.

Speaker #7: That's really a distribution that would be out there. Does it affect this year's performance? Now, we'll keep in each of the vehicles the capital we need to deploy versus currently in our expectations.

Operator: Our next question comes from Andrew Andersen with Jefferies.

Andrew Andersen: Hey, good morning. On the new demand at June, is that skewing towards more traditional layers versus aggregate covers? You know, of the aggregate business, what is the appetite to write that?

Speaker #7: I mean, we had a good year. I mean, they had a good year in 2025. You can see the NCI was $900 million plus that we earned.

Speaker #3: Over the years—and I think we talked, probably starting five to seven years ago—that we decided to take more of our Florida risk coming through nationwide programs.

Speaker #7: We're returning some of that back to the investors in those funds. So I think that's a good thing. That was the bulk of it, the 700.

Speaker #3: We always had good participations on some of the larger programs in Florida, larger writers in Florida. And then kind of selected more aggressively as we went through the stack of domestic companies.

David Marra: I think the most important thing from our perspective is the quality of the pricing, the quality of the overall risk, and the quality of the buyer. We've seen demand come from sustained buyers, you know, the nationwide personal lines companies, which are a core client base for us. There are some aggregate programs in there. I think, you know, our view on aggregate is that there's good aggregates and bad aggregates. The aggregates that are placed in the market now and the ones that we write as part of our portfolio are well structured. They're attaching at the capital level, not the earnings level.

Speaker #7: And we're positioned well for, as the underwrite in '26.

Speaker #9: Yeah. The one thing I'd add to the vehicles are about the same size as this year's last year. So this is really just returning earnings.

Speaker #3: Right now, our participation remains split between some of the larger Florida companies probably a little more breadth into the mid-tier companies and a lot of exposure still coming from the nationwide.

Speaker #9: And it's our normal process. We do it every year.

Speaker #8: Okay. Thanks so much. That helps.

Speaker #3: Thank you. And our next question comes from Pablo Singson with JPMorgan.

Speaker #3: So a smaller percent of the portfolio is still large enough to drive the tail in the capital for the property debt portfolio. Upper Southeast hurricane.

Speaker #10: Hi. Thank you. Most of my questions have been answered already. Sorry about that. I'll drop off.

Speaker #3: So it's a constantly evolving strategy in Florida, but it's one in which we know extremely well and we have all the leverage to be able to think about where best to take it.

David Marra: They're also either well-priced, the level of attritional losses is really well understood by the market at this point. They do make an attractive piece of the overall tower. You know, our approach to that new demand, we're a go-to market on that middle and bottom end, you know, regardless of whether there's an aggregate program in there. We can secure our line there and then use efficient capital sources to play on the top end as well and provide that one-stop shop across the board and then have really attractive returns on that meet the program for RenRe shareholders.

Speaker #7: Sure.

Speaker #3: Thank you. And we'll move next to Ryan Tunis with Cantor.

Speaker #3: Other property nationwide large domestic, small domestics.

Speaker #11: Hi. So just one from me for Kevin. Kevin, I was hoping that you could just remind us of the history of REN in terms of appetite for writing Florida domestic companies.

Speaker #1: Thank you. And our next question comes from Tracy Biggey with Full ull Research.

Speaker #11: Thank you. Most of my questions were asked. I'll just have one for me. I was going through your proxy and your 2025 ROE target—a 10.27% in the SCI plan.

Speaker #11: I feel like at one point that there were a good number, and then there were almost none. And maybe put in perspective, given where the health of the market is today, how you'd compare your that relative history in terms of your willingness, not just to write in terms of size, but just breadth of steels.

Andrew Andersen: Thanks. On Other Property, can you maybe just talk about how durable the mid-fifties attritional loss ratio there is as competition increases on that line?

Speaker #11: It stood out given how far above you've been operating. And it naturally raises questions about potentially being in a long-haul pricing decreases. Given it will take a lot for your ROE to fall to that level, you couldn't see very well that you could land a 15% just from NII and fees.

David Marra: This is David. I can talk about what we're seeing in the market.

Speaker #11: Thank you.

Kevin O'Donnell: The Other Property has had really good performance. It's had several years of sustained rate increases and improvements in terms and conditions. The rate is coming under pressure, but terms and conditions still holding, and we've seen, you know, favorable claims trends. With the current pressure on rates, we have shifted some of the capacity there and taken some risk off the table, finding a better price in the cat book, you know, mainly some Florida risk there. We have confident in continued sustained returns on the Other Property book where we have options to manage through some of the softening, but I'll let Bob comment on the going forward.

Speaker #7: Yeah. I've been here almost 30 years, and I've seen us participate in lots of different ways in the Florida market. We remain highly influential in the Florida market even today.

David Marra: The Other Property has had really good performance. It's had several years of sustained rate increases and improvements in terms and conditions. The rate is coming under pressure, but terms and conditions still holding, and we've seen, you know, favorable claims trends. With the current pressure on rates, we have shifted some of the capacity there and taken some risk off the table, finding a better price in the cat book, you know, mainly some Florida risk there. We have confident in continued sustained returns on the Other Property book where we have options to manage through some of the softening, but I'll let Bob comment on the going forward.

Speaker #11: So could you help us understand how you want investors to interpret this ROE target?

Speaker #3: It's a target. It's simply something that is used formulaically to produce a change in the slope of the curve in our compensation program. So we try to be careful not to put it out there as a target.

Speaker #7: Although it is a much smaller percent of our overall premium. I can reflect back into early 2000s, probably late '90s, where that was about 30% of our premium coming from Florida, broadly participating, highly structured.

Speaker #3: It's simply a formulaic input to a formula for our long-term compensation. There's no perfect way for compensation to work for the types of risks we're taking.

Speaker #7: Over the years, and I think we've talked probably starting five to seven years ago, that we decided to take more of our Florida risk coming through nationwide programs.

Speaker #3: We're casualty risk stretching seven years and volatility from property debt doesn't always reflect the performance of the quality of the underwriting. So it is simply I think a good way for us to think about how to compensate employees over the long term.

Robert Qutub: Yeah, this is Bob. As I said in my prepared comments, mid-fifties is where we feel comfortable given the mix of the portfolio. I mean, it'll have some ups and downs based on, you know, large events that come through, but right now, mid-fifties, I think I said, you know, 55 ± is kind of where I think about it.

Speaker #7: We always had good participations on some of the larger programs in Florida, larger writers in Florida. And then kind of selected more aggressively as we went through the stack of domestic companies.

Speaker #3: If you look at me, my compensation varies with the performance of the company, but more importantly, I'm deeply invested in the company with a large holding, and I put myself very much aligned with shareholders in the way I think about the performance of the company.

Andrew Andersen: Thank you.

Speaker #7: Right now, our participation remains split between some of the larger Florida companies probably a little bit more breadth into the mid-tier companies and a lot of exposure still coming from the nationwides.

Operator: Thank you. Our next question comes from Meyer Shields with KBW.

Meyer Shields: Thanks so much. When we think about this year's pricing for Florida at midyear, is there any reduction in maybe the provision for initial skepticism over how well the reforms were going to work? Besides risk-adjusted pricing, is there another discount working its way into pricing, or is that not relevant?

Speaker #3: One proxy for that is, you think about it as closer to cost of capital than a target for ROE. But it's not exactly that.

Speaker #7: So a smaller percent of the portfolio still large enough to drive the tail in the our tail capital for the property cat portfolio. For Southeast Hurricane, so it's a constantly evolving strategy in Florida, but it's one in which we know extremely well, and we have all the levers to be able to think about where best to take it.

Speaker #3: It is really simply a mechanism for us to think about changing the slope and the curve of compensation scheme.

Speaker #11: Got it. Thank you.

Speaker #1: Thank you. Our next question comes from Matthew Hammerman with Citi.

Kevin O'Donnell: Yeah. I think often we talk in terms of risk-adjusted pricing. I would say that if we look back at our credit for the reforms when they were originally put into place, we have seen more tangible benefit from the reforms which is coming into pricing. I would say that the overall economics within Florida are reducing on a comparable level to what we saw at 1 January, you know, and the portfolio is extremely well rated. You know, I think we've got good flexibility to leverage into the market. We're finding new opportunities to growing in Florida to give you some sense as to how much we like it. David's comment, you know, between Other Property and Property Cat.

Speaker #12: Hey, Mark. Two quick questions. The first is just thinking about all having fewer opportunities to deploy your capital than you do quantitative capital. And recognizing you've purchased all the shares you actually withheld, I'm just curious whether or not an organic corporate development is on the table for you as you think about the outlook.

Speaker #7: Other property nationwides, large domestic, small domestics.

Speaker #3: Thank you. And our next question comes from Tracy Bengiki with Wolf Research.

Speaker #12: And how that, if so, just at this point given what you’ve grown into, what would be additive?

Speaker #12: Thank you. Most of my questions were asked. We'll just have one for me. I was going through your proxy, and your 2025 ROE target of 10.27% in the STI plan.

Speaker #3: Thanks. Firstly, obviously, we're well positioned to think about organic growth, having fully integrated our last acquisition, being Validus. Nothing's changed. If we see something that advances our strategy as financially actionable, we would take a look and be able to execute.

Speaker #12: It stood out given how far above you've been operating. And it naturally raises questions about potentially being in the long haul of pricing decreases.

Kevin O'Donnell: Right now, property cat is returning, particularly in the Tri-County area, stronger returns than some of the Other Property, and we've made some shifts there. We like the portfolio. We have begun reforms, which I think is warranted, and continue to think the market is highly accretive.

Speaker #12: Given it will take a lot for your ROE to fall to that level. But you convinced me very well that you could land at 15% just from NII and fees.

Speaker #3: We are not looking we're looking to advance the strategy that we have. We feel we're a complete company with each of the components for us to continue to be successful.

Speaker #12: So could you help us understand how you want investors to interpret this ROE target?

Speaker #3: So if something becomes available, I think we'd be on the list for people to call. But we're focused very much on executing the strategy that we have.

Speaker #7: It's not a target. It's simply something that is used formulaically to produce a change in the slope of the curve in our compensation program.

Meyer Shields: Okay. That's very helpful. A question for Bob. You gave guidance for fees in Q2, but the press release also noted some funds returned to some of your partners. Does that have an impact in future quarters' management fees?

Speaker #3: And we see an organic growth as an accelerant, not as a change.

Speaker #7: So we try to be careful not to put it out there as a target. It's simply a formulaic input to a formula for long-term compensation.

Speaker #12: Is it—with just following up on the complete platform comment—is it unreasonable to think about perhaps business development that historically you would have thought about as traditional in nature, maybe taking place more in dedicated third-party capital solutions?

Speaker #7: There's no perfect way for compensation to work for the types of risks we're taking. We're casualty risks. We're stretching seven years. And volatility from property cat doesn't always reflect the performance of the quality of the underwriting.

Robert Qutub: Just to make sure I get the question, Meyer, correctly. You're talking about the capital return we had this year for the joint ventures, the $730 million. That's really a distribution that would be out there. Does it affect this year's performance? Now we'll keep in each of the vehicles the capital we need to deploy versus currently in our expectation. I mean, we had a good year. I mean, they had a good year in 2025. You can see the NCI was $900 million-plus that we earned. We're returning some of that back to our investors in those funds. I think that's a good thing. That was the bulk of it, the $700 million, and we're positioned well for, you know, as we underwrite in 2026.

Speaker #7: So it is simply I think a good way for us to think about how to compensate employees over the long term. If you look at me, my compensation varies with the performance of the company.

Speaker #3: Yeah, I think we're always looking at adding different capital to our franchises if it serves our customers. So I don't think of that necessarily as an organic growth.

Speaker #7: But more importantly, I am deeply invested in the company with a large holding. And I put myself very much aligned with shareholders in the way I think about the performance of the company.

Speaker #3: If we start a vehicle or bring a new trucker on, but that's something that is kind of I would say fundamental to our strategy, not something that I would think of as an organic even if it is a strategy that we don't otherwise attack today.

Speaker #7: One price for that is you could think about it as closer to cost of capital than a target for ROE. But it's not exactly that.

Speaker #7: It is really simply a mechanism for us to think about changing the slope and the curve of a compensation scheme.

Speaker #12: Yeah. That's fair. Just for clarification, I was thinking about it more in terms of maybe there's a book of business as a subscale participant and buying an entity doesn't make sense, but solving for both parties on a third-party with additional capital and off-balance sheet way could make a difference.

Kevin O'Donnell: Yeah. One thing I'd add to, the vehicles are about the same size as this year's last year, so this is really just returning earnings. It's, it's our normal process. We do it every year.

Speaker #12: Got it. Thank you.

Speaker #3: Thank you. Our next question comes from Matthew Hammerman with Citi.

Speaker #13: Hey, good morning. Two quick questions. First was just thinking about all having fewer opportunities than you to deploy your capital, than you do quantum of capital.

Meyer Shields: Okay. Thanks so much. That helps.

Operator: Thank you. Our next question comes from Pablo Singhan with JP Morgan.

Speaker #3: But we can do that. I think, again, I think that not to get too technical, often that type of structure is renewal rights structure.

Pablo Singhan: Hi. Thank you. Most of my questions have been answered already. Sorry about that.

Speaker #13: And recognizing you've repurchased all the shares you issued with Validus, I'm just curious whether or not in Organic Corporate Development is on the table for you as you think about the outlook.

Kevin O'Donnell: Sure.

Speaker #3: If it's a takeout from an existing, and that's something we're predictable in knowing how to do, so all of that stuff are things that we look at.

Operator: Thank you. We'll move next to Ryan Tunis with Cantor.

Speaker #13: And how that if so, just at this point, given what you've grown into, what would be additive?

Speaker #3: It's really some of the more production-focused stuff, the multiples still remain quite high, though.

Ryan Tunis: Okay. Just one from me for Kevin. Kevin, I was hoping that you could just remind us of the history of RenRe in terms of appetite for writing Florida domestic companies. I feel like at one point that there were a good number, and then there were almost none. Maybe put in perspective, like given where the health of the market is today, you know, how you compare your, you know, that relevant history in terms of your willingness, not just to write in terms of size, but just breadth of ceilings. Thank you.

Speaker #12: Yeah. And one clarifier was just with respect to the $15 billion of potential incremental demand at mid-year, can you just remind us relative to the relative to what just to put in kind of underlying exposure growth terms?

Speaker #7: Thanks. Firstly, obviously, we're well positioned to think about in organic growth having fully integrated our last acquisition being Validus. Nothing's changed. If we see something that advances our strategy and is financially actionable, we would take a look and be able to execute.

Speaker #3: Yes. The $15 billion that we referenced was 10 going to 15. And that is for US cap limit. So a limit that is exposed to primarily from US cap buyers and US cap exposure.

Speaker #7: We are not looking we're looking to advance the strategy that we have. We feel like we're a complete company with each of the components.

Speaker #7: For us to continue to be successful. So if something becomes available, I think we'd be on the list for people to call. But we're focused very much on executing the strategy that we have.

Kevin O'Donnell: Yeah. You know, I've been here almost 30 years, and I've seen us participate in lots of different ways in the Florida market. We remain highly influential in the Florida market even today, although it is a much smaller percent of our overall premium. You know, I can reflect back into early 2000s, probably late 1990s, where that was about 30% of our premium coming from Florida, broadly participating, highly structured. Over the years, and I think we've talked probably starting 5 to 7 years ago, that we decided to take more of our Florida risk coming through nationwide programs. We always had good participations on some of the larger programs in Florida, larger writers in Florida, and then kind of selected more aggressively as we went through the stack of domestic companies.

Speaker #3: We had $20 billion a couple of years ago, $15 billion last year, and it's simply between 10 to 15 this year.

Speaker #12: And I can just use a rate or similar rate online for that relative to rest, to kind of think about what the incremental exposure growth has been.

Speaker #7: And we see in organic growth as an accelerant, not as a change.

Speaker #13: Is it with just following up on the complete platform comment, is it unreasonable to think about perhaps business development that might have historically we would have thought about in traditional M&A terms, maybe taking place more in dedicated third-party capital?

Speaker #3: Yeah, that would be a good start.

Speaker #12: Okay. Thank you.

Speaker #1: Thank you. Our next question comes from Alex Scott with Barclays.

Speaker #13: Hi. First one I had for you is on some comments you were making around the reduced exposure, I guess, over 40% exposure reduction to social inflation impacted the social inflation impact parts of casualty.

Speaker #13: Solutions?

Speaker #7: Yeah. I think we're always looking at adding different capital to our franchise if it serves our customers. So I don't think of that necessarily as inorganic growth.

Speaker #13: Could you just extrapolate on what you see in there? What's preventing enough rate coming through that that doesn't become attractive at some point?

Speaker #13: How far away are we from that? Or any of the initiatives and states of Florida already adopted some TOR reforms, any of that working?

Speaker #7: If we start a vehicle or bring a new structure online, but that's something that is kind of I would say fundamental to our strategy, not something that I would think of as inorganic, even if it is a strategy that we don't otherwise attack today.

Kevin O'Donnell: Right now, our participation remains split between some of the larger Florida companies, probably a little bit more breadth into the mid-tier companies, and a lot of exposure still coming from the nationwides. A smaller percent of the portfolio, still large enough to drive our tail capital for the Property Catastrophe portfolio, for Southeast hurricane. It's a constantly evolving strategy in Florida. It's one in which we know extremely well, and we have all the levers to be able to think about where best to take it, Other Property nationwides, large domestic, and small domestics.

Speaker #13: Just love to hear the thoughts behind the reduction whether at some point that could become a growth area again.

Speaker #3: Yeah. I can give you more detailed update as to what's going on there. So for about the last 24 months, the market has recognized that social inflation and inflation in general claims has accelerated.

Speaker #13: No, that's fair. Just for clarification, I was thinking about it more in terms of maybe there's a book of business at a subscale participant and buying an entity doesn't make sense.

Speaker #3: And that's when rates started to go up. And 10 to 12 is our estimated range for loss trend, but that'll vary by class. It'll vary by subclass.

Speaker #13: But solving for both parties on a with third-party with additional capital and an off-balance sheet way could make the difference.

Speaker #3: And insurers are getting rate. Sometimes it's above that. Sometimes it's around that. The key is trend is cumulative, and that rate has to keep going or we'll see sledge in combined ratios and loss ratios and casualty space.

Speaker #7: But we can do that. I think, again, I think of that not to get too technical here. Often that type of structures are renewal rights structure.

Operator: Thank you. Our next question comes from Tracy Benguigui with Wolfe Research.

Speaker #3: So we're happy with where the business is headed. The insurers are doing the right things. Rate is the most easy way to measure that.

Speaker #7: If it's a takeout from an existing, and that's something we're pretty comfortable in knowing how to do. So all of that stuff are things that we look at.

Tracy Benguigui: Thank you. Most of my questions were asked, so I'll just have one for me. I was going through your proxy in your 2025 ROE target of 10.27% in the SDI plan. It stood out given how far above you've been operating, and it naturally raises questions about potentially being in the long haul of pricing decreases, given it will take a lot for your ROE to fall to that level. You convinced me very well that you could land at 15% just from NII and fees. Could you help us understand how you want investors to interpret this ROE target?

Speaker #3: The other areas that are important to future success of the business is how insurers are investing claims handling. And the plaintiff's bar has been highly successful in combating insurers and winning increasing awards.

Speaker #7: It's really some of the more production-focused stuff, the multiple still remain quite high, though.

Speaker #13: Yep. And then one clarifier was just that with respect to the $15 billion of potential incremental demand at mid-year, can you just remind us relative to the relative to what, just to put it in kind of underlying exposure growth terms?

Speaker #3: Insurers are now investing in the right data and technology that are coordinating through towers better. It's a C-suite issue all the way from the top down.

Speaker #3: They get a lot of focus with insurance companies. The flip side of that is that it'll take a long time for the investments they're making to start coming through the numbers because of ways claims get processed.

Speaker #3: So we're watching that really closely too. But the third area that we have in order to optimize our own portfolio is figure out an inflationary environment.

Speaker #7: Yes. The $15 billion that we referenced was 10 going to 15. And that is for US cap limit. So a limit that is exposed to primarily from US cap buyers and US cap exposure.

Kevin O'Donnell: It's not a target. It's simply something that is used formulaically to produce a change in the slope of the curve in our compensation program. We try to be careful not to put it out there as a target. It's simply a formulaic input to a formula for long-term compensation. You know, there's no perfect way for compensation to work for the types of risks we're taking, where casualty risks are stretching seven years and volatility from property cat doesn't always reflect the performance of the quality of the underwriting. It is simply, I think, a good way for us to think about how to compensate employees over the long term.

Speaker #3: Which deals do we want to be on? Which deals do we not want to be on? And so that's where we've been saying we've been reducing on the deals that are most exposed to claims inflation and social inflation.

Speaker #7: We had $20 billion a couple of years ago, $15 billion last year, and it's simply between 10 to 15 this year.

Speaker #3: That would be a deal structure where there's a lower layer access of loss. We're covering the parts of the business that are most at risk for social inflation.

Speaker #13: Right. And I can just use a rate online similar rate online for that relative to ref to kind of think about what the incremental exposure growth is then.

Speaker #3: Or if an insurance company isn't making the right adjustments in claims handling, that's been the primary area of focus for us. You think going forward, the business is on the right track.

Speaker #7: Yeah. That would be a good start.

Speaker #3: We have a substantial position in that market. We have a leadership position. We're well positioned to grow if we see those margins turning around.

Speaker #13: Okay. Thank you.

Speaker #3: Thank you. Our next question comes from Alex Scott with Barclays.

Speaker #3: But with the length of time it takes for margins to come through, we're going to be cautious there for now.

Kevin O'Donnell: If you look at me, my compensation, varies with the performance of the company, but more importantly, I am deeply invested in the company with a large holding and, you know, I put myself very much aligned with shareholders in the way I think about the performance of the company. You know, one product for that is you could think about it as closer to cost of capital than a target for ROE, but it's not exactly that. It is really simply a mechanism for us to think about changing the slope and the curve of a compensation scheme.

Speaker #14: Hi. First one I had for you is on some of the comments you're making around the reduced exposure, what I guess over 40% exposure reduction to social inflation impacted the most social inflation impacted parts of casualty.

Speaker #12: Got it. That all makes sense. And then the growth opportunity with some of the large seeds on nationwide contracts, could you give a little more color there on what's the opportunity?

Speaker #12: Why are you finding that rate adequate? And do we need to think at all about whether it is enough of a makeshift for us to consider convective storm versus hurricane risk, and having a little more exposure to some of the convective storm?

Speaker #14: Could you just extrapolate on what are you seeing there? What's preventing enough rate coming through that that doesn't become attractive at some point? How far away are we from that?

Speaker #14: Or any of the initiatives and states other than Florida who's already adopted some TORB reform, is any of that working? But just love to hear the thoughts behind the reduction and whether at some point that could become a growth area again.

Speaker #3: Yeah, that's a great question. If we just step back a little bit—so, first of all, we've been able to deploy $1 billion of limit in Q1 in the market.

Tracy Benguigui: Got it. Thank you.

Operator: Thank you. Our next question comes from Matthew Heimermann with Citigroup.

Speaker #3: That's the easiest metric for us to measure that. There have been some rate decreases, so rates are roughly flat where they are going on the market.

Matthew Heimermann: Hey, good morning. Two quick questions. First was just, thinking about all, you know, having fewer opportunities than you to deploy your capital than you do quantum of capital, and recognizing you've repurchased all the shares you issued with Validus. I'm just curious whether or not inorganic corporate development is on the table for you as you think about the outlook and how that. If so, just like at this point, given what you're growing into, what's, what would be additive?

Speaker #3: But rate adequacy overall in U.S. cap is still highly adequate, coming off the highs of one of the best markets we've seen in a generation.

Speaker #7: Yeah. I could give you a more detailed update as to what's going on there. So about the last 24 months, the market has recognized that social inflation and inflation in general and claims has accelerated.

Speaker #3: So, really comfortable with the returns in the U.S. cap space. But not every cap deal is rated equal. Not every layer, not every client.

Speaker #7: And that's when rates started to going up. And 10 to 12 is our estimated range for loss trend, but that'll vary by class. It'll vary by subclass.

Speaker #3: Our goal is to underwrite each deal, each client, make sure we have our confidence in our independent view of risk. And once we where the best deals and the worst deals are.

Speaker #7: And insurers are getting rate. Sometimes it's above that. Sometimes it's around that. The key is trend is cumulative. And that rate has to keep going or we'll see slippage in combined ratios and loss ratios in the casualty space.

Speaker #3: And while there's overall strong level of rate adequacy, the teams done a great job in not only recognizing where the best deals are, but also having their client relationships to lock up the lines in those deals early.

Kevin O'Donnell: Thanks. Firstly, obviously, we're well-positioned to think about inorganic growth, having fully integrated our last acquisition being Validus. Nothing's changed. If we see something that advances our strategy and is financially actionable, we would take a look and be able to execute. You know, we are not looking, we're looking to advance the strategy that we have. We feel like we're a complete company with each of the components for us to continue to be successful. You know, if something becomes available, I think we'd be on the list for people to call. You know, we're focused very much on executing the strategy that we have, and we see inorganic growth as an accelerant, not as a change.

Speaker #7: So we're happy with where the business is headed. The insurers are doing the right things. Rate is the most easy way to measure that.

Speaker #3: And that's another differentiator. So that's how we're approaching it and how that growth in deploying capital into a high-margin business is going to continue to impact returns going forward.

Speaker #7: The other areas that are important to the future success of the business is how insurers are investing in claims handling. And the plaintiff's bar is in highly successful in combating insurers and winning increasing awards.

Speaker #1: Thank you. And our next question comes from David Maltzemaden with Evercore.

Speaker #7: Insurers are now investing in the right data and technology. They're coordinating through the towers better. It's a C-suite issue all the way from the top down.

Speaker #13: Hey, guys. Thanks for squeezing me in. Just a quick one. On casualty and specialty, just on the accident your loss ratio, if I back out the Iran losses, it looks like the loss ratio deteriorated by, I don't know, 120 basis points year on year, and that's definitely above the score where it's been running recently.

Speaker #7: That gets a lot of focus with insurance companies. The flip side of that is that it'll take a long time for the investments they're making to start coming through the numbers because of the way these claims get processed.

Matthew Heimermann: With just following up on the complete platform comment, is it unreasonable to think about perhaps, business development that might have historically we would have thought about in traditional M&A terms, maybe taking place more in dedicated third-party capital solutions?

Speaker #7: So we're watching that really closely too. But the third area that we have in order to optimize our own portfolio is figure out an inflationary environment.

Speaker #13: I was hoping you could elaborate on what was driving that underlying move there.

Speaker #7: Which deals do we want to be on? Which deals do we not want to be on? And so that's where we've been saying we've been reducing on the deals that are most exposed to claims inflation and social inflation.

Speaker #3: I think if you go back and compare it to last year and the first quarter again, comparisons to last year are difficult because of the wildfires.

Speaker #7: That would be deal structures where there's a lower layer excess of loss or covering the parts of the business that are most at risk for social inflation or if an insurance company isn't making the right adjustments in claims handling.

Speaker #3: And we did take some we did take some specialty losses there, which would have elevated the current accident year loss rate. Kevin said we printed a current accident year of 70.

Kevin O'Donnell: Yeah, I, you know, I think we're always looking at adding different capital to our franchises, you know, if it's, if it serves our customers. I don't think of that necessarily as inorganic growth, you know, if we start a vehicle or, you know, bring a new structure online. That's something that is kinda, I would say fundamental to our strategy, not something that I would think of as inorganic, even if it is a strategy that we don't otherwise attack today.

Speaker #7: And that's been the primary area of focus for us. You think going forward, like you said, the business is on the right track. We have a substantial position in that market.

Speaker #3: But that included a couple of points related to the Iran war going on right now. So that's kind of a better starting point when you think about it, in terms of where we are before you get events that would come through and drive that up.

Speaker #7: We have a leadership position. We're well positioned to grow if we see those margins turning around. But with the length of time it takes for margins to come through, we're going to be cautious there for now.

Speaker #13: We are not seeing an uptick in our loss ratio. Other than we've added a couple of points for Iran. So I'm not sure about the reconciliation you're doing, but that's not something that is part of our dialogue managing the book right now.

Speaker #13: Got it. That all makes sense. And then the growth opportunity was some of the large seatments on nationwide contracts. Could you give a little more color there on what's the opportunity?

Matthew Heimermann: No, that's fair. I just for clarification, I was thinking about it more in terms of like maybe there's a book of business at a subscale participant and buying, you know, an entity doesn't make sense, but solving for both parties on a, you know, with third party with additional capital in an off-balance sheet way could-

Speaker #13: Got it. Thank you. And then maybe just quickly just I know you guys don't disclose PMLs, but maybe just an update on how you think that'll shape up just as we go through the mid-year renewal here.

Speaker #13: Why are you finding that more rate adequate? And do we need to think at all just is it enough makeshift for us to think about convective storm versus hurricane risk and having a little more exposure to some of the convective storm?

Speaker #13: I think you had talked about that being flat for Southeast winds. So I'm just wondering, is that still the case? Is it going to be a little higher now, just because it sounds like there might be more opportunities and more demand coming?

Kevin O'Donnell: Yeah.

Matthew Heimermann: Could make the difference.

Speaker #7: Yeah. That's a great question. And if we just step back a little bit. So first of all, we've been able to deploy a billion dollars of limit in Q1 into the market.

Kevin O'Donnell: We can do that. I think, again, I think of that, not to get too technical, often that type of structure is a renewal rights structure if it's a takeout from an existing, and that's something we're pretty comfortable in knowing how to do. All of that stuff are things that we look at. It's really, you know, some of the more production-focused stuff, the multiples still remain quite high, though.

Speaker #13: Just hope for an update there. Yeah. I'd say that David had mentioned we're deploying a little bit more capacity into the market. That'll push up the exposure we have for Southeast hurricane a bit.

Speaker #7: That's the easiest metric for us to measure. There have been some rate decreases. So rates are roughly flat rather than showing the decreases that are going on in the market.

Speaker #7: But the rate adequacy overall in US cap is still highly adequate. Coming off the highs of the best markets we've seen in a generation.

Speaker #13: I would say if I was giving 10,000-foot guidance, I would say relatively flat, biased a little bit more exposure. But it's not really going to change the overall profile of risk that we're taking as an organization.

Matthew Heimermann: Yeah. One clarifier was just that with respect to the $15 billion of potential incremental demand at mid-year, can you just remind us relative to what, just to put it in kind of like, you know, underlying exposure growth terms?

Speaker #7: So we're really comfortable with the returns in the US cap space. But not every cap deal has created equal. So not every layer, not every client.

Speaker #7: Our goal is to underwrite each deal, each client, make sure we have our confidence in our independent view of risk. And once we get that, we see a wide dispersion in terms of where the best deals and the worst deals are.

Speaker #13: Great. Thank you.

Speaker #3: Yep.

Speaker #1: Thank you. This concludes our question and answer session. I will now turn the meeting back to Kevin O'Donnell for any closing remarks.

Speaker #7: And while there's overall strong level of rate adequacy, the team's done a great job in not only recognizing where the best deals are but also having their client relationships to lock up the lines in those deals early.

David Marra: Yes. The $15 billion that we referenced was $10 going to $15. That is for US cat limit. Limits that the expense is exposed to primarily from US cat buyers and US cat exposure. We had $20 billion a couple years ago, $15 billion last year. It will be between $10 to $15 this year.

Speaker #13: Thank you for joining the call. We're proud of the results we achieved this quarter. We feel like the book is in great position. And we look forward to talking to next quarter.

Speaker #13: Thank you.

Speaker #7: And that's another differentiator. So that's how we're approaching it and how that growth in deploying capital into a high-margin business is going to continue to impact returns going forward.

Matthew Heimermann: Right. I could just use a rate on line, similar rate on line for that relative to rest to kind of think about what the incremental exposure growth is then?

Speaker #3: Thank you. And our next question comes from David Mottomaden with Evercore.

David Marra: Yeah, that would be a good start.

David Marra: Okay. Thank you.

Matthew Heimermann: Okay. Thank you.

Speaker #15: Hey, guys. Thanks for squeezing me in. Just a quick one. On casualty and specialty, just on the accident-year loss ratio, if I back out the Iran losses, it looks like the loss ratio deteriorated by, I don't know, 120 basis points year on year.

Operator: Thank you. Our next question comes from Alex Scott with Barclays.

Alex Scott: Hi. First one I have for you is on some of the comments you're making around the reduced exposure, what I guess over 40% exposure reduction to social inflation impacted, or the most social inflation impacted parts of casualty. Could you just extrapolate on, you know, what are you seeing there? What's preventing, you know, enough rate coming through that that doesn't become attractive at some point? Like how far away are we from that? Or, you know, any of the, you know, initiatives in states other than, you know, Florida, who's already adopted some tort reform, is any of that working? Would just love to hear, you know, the thoughts behind the reduction and whether at some point that could become a growth area again.

Speaker #15: And that's definitely above the sort of where it's been running recently. I was hoping you could elaborate on what was driving that underlying movement there.

Speaker #7: I think if you go back and compare it to last year in the first quarter, again, comparisons to last year are difficult because of the wildfires.

Speaker #7: And we did take some we did take some specialty losses there, which would have elevated the current accident-year loss rate. As Kevin said, we printed a current accident-year of 70.

Speaker #7: But that included a couple of points related to the Iran war going on right now. So that's kind of a better starting point when you think about it in terms of where we are before you get up.

David Marra: Yeah. I could give you a more detailed update as to what's going on there. Yeah, for about the last 24 months, the market has recognized that social inflation and inflation in general on claims has accelerated, and that's when rates started to go up. You know, 10 to 12 is our estimated range for loss trend, but that'll vary by class, it'll vary by sub-subclass. Insurers are getting rate. Sometimes it's above that, sometimes it's around that. The key is trend is cumulative, and that rate has to keep going or we'll see slippage in combined ratios and loss ratios in the casualty space. We're happy with where the business is headed. The insurers are doing the right things. Rate is the most easy way to measure that.

Speaker #16: We are not seeing an uptick in our loss ratio. Other than we've added a couple of points for Iran. So I'm not sure about the reconciliation you're doing, but that's not something that is part of our dialogue in managing the book right now.

Speaker #15: Got it. Thank you. And then maybe just quickly, just I know you guys don't disclose PMLs. But maybe just an update on how you think that'll shape up just as we go through the mid-year renewals here.

Speaker #15: I think you had talked about that being flat for Southeast winds. So I'm just wondering is that still the case? Is it going to be a little higher now just because of it sounds like there might be more opportunities and more demand coming?

David Marra: The other areas that are important to the future success of the business is how insurers are investing in claims handling. You know, the plaintiff's bar has been highly successful in combating insurers and winning increasing awards. Insurers are now investing in the right data and technology. They're coordinating through the towers better. It's a C-suite issue all the way from the top down that gets a lot of focus with insurance companies. You know, the flip side of that is it'll take a long time for the investments they're making to start coming through the numbers because of the way these claims get processed. We're watching that really closely, too.

Speaker #15: Just hoping for an update there.

Speaker #16: Yeah. It's that David had mentioned we're deploying a little bit more capacity into the market. That'll push up the exposure we have for Southeast hurricane a bit.

Speaker #16: I would say if I was giving 10,000-foot guidance, I would say relatively flat. Biased a little bit more exposure. But it's not really going to change the overall profile.

David Marra: The third area that we have in order to optimize our own portfolio is figure out an inflationary environment, which deals we wanna be on, which deals do we not wanna be on. That's where we've been saying we've been reducing on the deals that are most exposed to claims inflation and social inflation. That would be deal structures where there's a lower layer excess of loss or covering the parts of the business that are most at risk for social inflation or if an insurance company isn't making the right adjustments in claims handling. That's been the primary area of focus for us. I think, yeah, going forward, like we said, the business is on the right track. We have a substantial position in that market. We have a leadership position.

Speaker #16: The risk that we're taking as an organization.

Speaker #15: Great. Thank you.

Speaker #7: Yep.

Speaker #3: Thank you. This concludes our question and answer session. I will now turn the meeting back to Kevin O'Donnell for any closing remarks.

Speaker #16: Thank you for joining the call. We're proud of the results we achieved this quarter. We feel like the book is in great position. And we look forward to talking to you next quarter.

Speaker #16: Thank you.

David Marra: We're well-positioned to grow if we see those margins turning around. With the length of time it takes for margins to come through, we're gonna be cautious there for now.

Alex Scott: Got it. That all makes sense. The, the growth opportunity with some of the large seatings on nationwide contracts, could you give a little more color there on like, you know, what's the opportunity? Why are you finding that more rate adequate? Do we need to think at all about just, like, is it enough makeshift for us to think about convective storm versus hurricane risk and, you know, having a little more exposure to some of the convective storm?

David Marra: Yeah, and that's a great question. If we just step back a little bit, first of all, we've been able to deploy $1 billion of limit in Q1 into the market. You know, that's the easiest metric for us to measure. That there have been some rate decreases, rates are roughly flat that are going on in the market. The rate adequacy overall in US CAT is still highly adequate, coming off the highs of the best markets we've seen in a generation. We're really comfortable with the returns in the US CAT space. Now, not every CAT deal is created equal. Not every layer, not every client. Our goal is to underwrite each deal, each client, make sure we have our confidence in our independent view of risk.

David Marra: Once we get that, we see a wide dispersion in terms of where the best deals and the worst deals are. While there's overall strong level of rate adequacy, the team's done a great job in not only recognizing where the best deals are, but also having the client relationships to lock up the lines in those deals early. That's another differentiator. That's how we're approaching it and how that growth in deploying capital into a high margin business is gonna continue to impact, you know, re-returns going forward.

Operator: Thank you. Our next question comes from David Motemaden with Evercore.

David Motemaden: Hey, guys. Thanks for squeezing me in.

David Marra: Sure

David Motemaden: ... just a quick one, on casualty and specialty, just on the accident year loss ratio. If I back out the Iran losses, it looks like the loss ratio deteriorated by 120 basis points year on year, and that's definitely, you know, above the sort of where it's been running recently. I was hoping you could elaborate on what was driving that underlying movement there.

Robert Qutub: I think if you go back and compare it to last year in Q1, again, comparisons to last year are difficult because of the wildfires, and we did take some specialty losses there, which would have elevated the current accident year loss rate. As Kevin said, we printed a current accident year of 7, but that included 2 points related to the Iran war going on right now. That's kind of a better starting point when you think about it.

David Motemaden: In terms of where we are before you get events that would come through and drive that up?

Robert Qutub: In terms of where we are before you get events that would come through and drive that up?

Kevin O'Donnell: We are not seeing an uptick in our in our loss ratio, other than, you know, we've added a couple points for Iran. I'm not sure about the reconciliation you're doing, but that's not something that is part of our dialogue in managing the book right now.

David Motemaden: Got it. Thank you. Then, maybe just quickly, you know, just, you know, I know you guys don't disclose PMLs, but maybe just an update on how you think that'll shape up just as we go through, you know, the mid-year renewals here. I think you had talked about that being flat for southeast wind. I'm just wondering, is that still the case? Is it gonna be a little higher now just because of, sounds like there might be more opportunities and more demand coming. Just hoping for an update there.

Kevin O'Donnell: Yeah. I'd say, you know, David had mentioned we're deploying a little bit more capacity into the market. That'll push up the exposure we have for southeast hurricane a bit. I would say if I was giving, you know, 10,000 foot guidance, I would say relatively flat, biased a little bit more exposure, but it's not really gonna change the overall profile, the risk that we're taking as an organization.

David Motemaden: Great. Thank you.

Kevin O'Donnell: Yep.

Operator: Thank you. This concludes our question and answer session. I will now turn the meeting back to Kevin O'Donnell for any closing remarks.

Kevin O'Donnell: Thank you for joining the call. We're proud of the results we achieved this quarter. We feel like the book is in great position, we look forward to talking to you next quarter. Thank you.

Operator: This concludes the RenaissanceRe Q1 2026 earnings call and webcast. Please disconnect your line at this time and have a wonderful day.

Q1 2026 Renaissancere Holdings Ltd Earnings Call

Request DemoDemo

Renaissancere Holdings

Earnings