RenaissanceRe showing decreased profits in 2007 Q4

RenaissanceRe Holdings Ltd. has reported US$62.2 million in 2007 Q4 net income, compared to of US$201.1 million in 2006 Q4.
The company generated an operating return on average common equity of 26.1% for 2007 Q4, compared to 33.3% in 2006 Q4.
Neill A. Currie, CEO, commented: “I am pleased to report strong full year earnings, resulting in an increase in book value per common share of over 19% and an operating return on equity of 27%. These earnings are a result of a relatively low level of insured catastrophe losses for the full year, solid investment income and strong performance by our team.”
Gross premiums written for 2007 Q4 were US$122.2 million, a US$72.7-million decrease from the 2006 Q4.
Gross premiums written for all of 2007 amounted to US$1.81 billion, a US$134-million decrease from 2006.
The company reported that its managed catastrophe and individual risk premiums experienced declines of 4.9% and 19.3%, respectively, in 2007 compared to 2006 “primarily due to a softening market and selective underwriting.”
Currie added: “Although our premium volume is down, we are pleased with the results of our January 1 renewals and have constructed an attractive portfolio of business for 2008. We will maintain our underwriting discipline, focusing on profit rather than premium volume. This discipline has been part of our culture since our formation and we believe this strategy will continue to benefit our shareholders over the long term.”