RenaissanceRe Reports Operating Loss of $143.4 Million for the Third Quarter of 2008 or $2.35 Operating Loss Per Common Share

RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported an operating loss attributable to common shareholders of $143.4 million for the third quarter of 2008, compared to operating income available to common shareholders of $167.8 million in the third quarter of 2007. Operating (loss) income excludes net realized investment losses of $87.6 million and net realized investment gains of $1.6 million in the third quarters of 2008 and 2007, respectively, and net unrealized losses on credit derivatives issued by entities included in investments in other ventures, under equity method of $nil and $36.0 million in the third quarters of 2008 and 2007, respectively. Operating loss per diluted common share was $2.35 in the third quarter of 2008, compared to operating income per diluted common share of $2.33 in the third quarter of 2007. Net loss attributable to common shareholders was $231.0 million or $3.79 per diluted common share in the third quarter of 2008, compared to net income available to common shareholders of $133.4 million or $1.85 per diluted common share for the third quarter of 2007.

Tangible book value per common share was $37.02 at September 30, 2008, a 12.2% decrease in the third quarter of 2008, compared to a 4.3% increase in the third quarter of 2007. Book value per common share was $38.94 at September 30, 2008, a 10.1% decrease in the third quarter of 2008, compared to a 4.2% increase in the third quarter of 2007. As described in more detail below, the Company’s book value per share for the third quarter of 2008 was negatively impacted by $276.0 million of net negative impact from hurricanes Gustav and Ike and negative investment results of $93.3 million. Tangible book value per share was also impacted by the addition of $46.4 million of goodwill and other intangibles during the third quarter of 2008.

Neill A. Currie, CEO, commented: "The combination of the U.S. hurricanes and turmoil in the financial markets resulted in a decrease in our tangible book value per share this quarter, but also served to reinforce our position as a market leader. Our brokers and clients value our financial strength and proven willingness to pay claims quickly as well as our ability to provide substantial reinsurance capacity in these turbulent times.”

Mr. Currie added: "We anticipate that additional opportunities will emerge with the expected decline in industry capital and continued stress in the financial markets. As we look ahead to 2009 and the upcoming January 1^st renewal season, our strong ratings, solid balance sheet and experienced underwriting team, coupled with our proven risk management systems, position us well to capture these opportunities.”

THIRD QUARTER 2008 RESULTS

Net Impact of Hurricanes Gustav and Ike

The Company recorded $276.0 million of net negative impact from hurricanes Gustav and Ike in the third quarter of 2008. Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions and minority interest. These amounts are based on management's estimates following a review of the Company's potential exposures and discussions with certain clients and brokers. Given the magnitude and recent occurrence of these events, and other uncertainties inherent in loss estimation, meaningful uncertainty remains regarding losses from these events and the Company’s actual ultimate net losses from these events may vary materially from these estimates.

See the supplemental financial data below for additional information detailing the net negative impact from hurricanes Gustav and Ike on the Company’s consolidated financial statements and its Reinsurance and Individual Risk segment results.

Underwriting Results

Gross premiums written for the third quarter of 2008 were $239.8 million, a $31.0 million increase from the third quarter of 2007. As described in more detail below, the increase in gross premiums written was driven by a $27.9 million increase in gross premiums written in the Company’s Reinsurance segment combined with a $20.9 million decrease in gross premiums ceded from the Individual Risk segment to the Reinsurance segment, and partially offset by a $17.8 million decrease in gross premiums written in the Company’s Individual Risk segment. The Company incurred an underwriting loss of $240.5 million and had a combined ratio of 163.4% in the third quarter of 2008, compared to $144.5 million of underwriting income and a combined ratio of 60.6% in the third quarter of 2007. The $385.0 million decrease in underwriting income and 102.8 percentage point increase in the combined ratio was driven by hurricanes Gustav and Ike which occurred in the third quarter of 2008 and resulted in an underwriting loss of $419.6 million and increased the Company’s combined ratio by 116.8 percentage points. The impact of these hurricanes on the Company’s Reinsurance and Individual Risk segments was $379.9 million and $39.7 million of underwriting losses, respectively. The Company experienced $36.0 million of favorable development on prior year reserves in the third quarter of 2008, compared to $20.2 million of favorable development in the third quarter of 2007. The favorable development is primarily due to lower than expected claims emergence in the Company’s Reinsurance segment.

Following is supplemental financial data regarding the net financial statement impact on the Company’s third quarter 2008 results due to hurricanes Gustav and Ike:

	Three months ended September 30, 2008
(in thousands of United States dollars)	Gustav				Ike				Total
Net claims and claim expenses incurred	$	(80.3	)		$	(378.5	)		$	(458.8	)
Net reinstatement premiums earned		12.3				31.6				43.9
Lost profit commissions		(1.9	)			(2.8	)			(4.7	)
Net impact on underwriting result		(69.9	)			(349.7	)			(419.6	)
Minority interest - DaVinciRe		25.3				118.3				143.6
Net negative impact	$	(44.6	)		$	(231.4	)		$	(276.0	)
Impact on combined ratio		16.9	%			94.8	%			116.8	%
Following is supplemental financial data regarding the underwriting impact by segment on the Company’s third quarter 2008 results due to hurricanes Gustav and Ike:
	Three months ended September 30, 2008
(in thousands of United States dollars)	Reinsurance				Individual Risk				Total
Net claims and claim expenses incurred	$	(424.2	)		$	(34.6	)		$	(458.8	)
Net reinstatement premiums earned		49.0				(5.1	)			43.9
Lost profit commissions		(4.7	)			-				(4.7	)
Net impact on underwriting result	$	(379.9	)		$	(39.7	)		$	(419.6	)
Impact on combined ratio		166.0	%			30.2	%			116.8	%

Reinsurance Segment

Gross premiums written for the Company’s Reinsurance segment increased $27.9 million to $169.5 million in the third quarter of 2008, compared to $141.5 million in the third quarter of 2007. As detailed in the table above, the increase in gross premiums written in the quarter relative to the third quarter of 2007 was primarily due to $49.0 million of reinstatement premiums written and earned as a result of hurricanes Gustav and Ike. Excluding the impact of reinstatement premiums, gross premiums written would have been down due to softening market conditions which resulted in lower premium rates on business written during the third quarter of 2008. Net premiums earned increased to $251.1 million in the third quarter of 2008, compared to $242.5 million in the third quarter of 2007.

The Reinsurance segment incurred an underwriting loss of $227.6 million in the third quarter of 2008, compared to $126.8 million of underwriting income in the third quarter of 2007. In the third quarter of 2008, the Reinsurance segment generated a net claims and claim expense ratio of 168.7%, an underwriting expense ratio of 21.9% and a combined ratio of 190.6%, compared to 27.8%, 20.0% and 47.8%, respectively, in the third quarter of 2007. The $354.3 million decrease in underwriting income and 142.8 percentage point increase in the combined ratio in the third quarter of 2008 compared to the third quarter of 2007 was principally driven by the impact of hurricanes Gustav and Ike. As noted in the table above, hurricanes Gustav and Ike resulted in an underwriting loss of $379.9 million and added 166.0 percentage points to the Reinsurance segment’s combined ratio in the third quarter of 2008. The Reinsurance segment experienced $30.6 million of favorable loss reserve development in the third quarter of 2008, compared to $15.8 million in the third quarter of 2007, primarily due to lower than expected claims emergence in the Company’s catastrophe unit in the third quarter of 2008 and lower than expected claims emergence in the Company’s catastrophe and specialty reinsurance units during the third quarter of 2007.

Individual Risk Segment

Gross premiums written for the Company’s Individual Risk segment decreased $17.8 million to $83.7 million in the third quarter of 2008, compared to $101.5 million in the third quarter of 2007. For the first nine months of 2008, gross premium written in the Company’s Individual Risk segment increased $16.1 million, or 3.5%, to $479.4 million, compared to $463.2 million for the same period in 2007. The increase in gross premiums written for the first nine months of 2008 compared to the first nine months of 2007 was principally driven by a $70.2 million, or 46.8% increase, in the Company’s multi-peril crop insurance premium and partially offset by decreases in the segment’s other lines of business. Net premiums earned increased $3.7 million to $128.3 million in the third quarter of 2008, compared to $124.5 million in the third quarter of 2007.

The Individual Risk segment incurred an underwriting loss of $13.0 million in the third quarter of 2008, compared to $17.8 million of underwriting income in the third quarter of 2007. In the third quarter of 2008, the Individual Risk segment generated a net claims and claim expense ratio of 87.1%, an underwriting expense ratio of 23.0% and a combined ratio of 110.1%, compared to 51.7%, 34.1% and 85.8%, respectively, in the third quarter of 2007. The $30.7 million decrease in underwriting income and 24.3 percentage point increase in the combined ratio in the third quarter of 2008 compared to the third quarter of 2007 was principally driven by the impact of hurricanes Gustav and Ike. As noted in the table above, hurricanes Gustav and Ike resulted in $39.7 million in underwriting losses and added 30.2 percentage points to the Individual Risk segment’s combined ratio in the third quarter of 2008. The decrease in underwriting income was partially offset by a decrease in acquisition expenses which was principally driven by an increase in the proportion of net premiums earned from the Company’s multi-peril crop insurance, which when compared to the Individual Risk segment’s other lines of business, has lower acquisition costs than the other lines. The Individual Risk segment experienced $5.4 million of favorable development in the third quarter of 2008 compared to $4.4 million of favorable development in the third quarter of 2007.

Investments

The return on the Company’s investment portfolio was down significantly in the third quarter of 2008 compared to the third quarter of 2007. The lower returns were principally due to widening credit spreads as a result of the turmoil in the financial markets which resulted in realized and unrealized losses within the Company’s fixed maturity investments available for sale combined with lower returns within the Company’s other investments. The Company’s total investment result, which includes the sum of net investment income, net realized (losses) gains on investments and the net change in unrealized holding gains on fixed maturity investments available for sale, was negative $93.3 million in the third quarter of 2008, a $212.9 million decrease from $119.6 million in the third quarter of 2007.

Net investment income was $15.8 million in the third quarter of 2008 compared to $95.6 million in the third quarter of 2007, a decrease of $79.8 million. The decrease was principally driven by a $32.1 million decrease in net investment income from the Company’s hedge fund and private equity investments and a $33.1 million decrease in the Company’s other investments, principally senior secured bank loan funds and non-U.S. fixed income funds. The Company’s other investments are accounted for at fair value with the change in fair value recorded in net investment income.

Net realized investment losses were $87.6 million in the third quarter of 2008 compared to net realized investment gains of $1.6 million in the third quarter of 2007, a decrease of $89.2 million. The decrease was driven by a $94.5 million increase in other than temporary impairments which totaled $98.8 million in the third quarter of 2008 compared to $4.3 million in the third quarter of 2007, principally due to a widening of credit spreads. Included in other than temporary impairment charges are credit-related charges of $7.2 million and $nil for the third quarters of 2008 and 2007, respectively, with the third quarter 2008 credit related impairments due to the Company’s direct holdings of fixed maturity securities issued by Lehman Brothers Holdings Inc. and its subsidiaries ("Lehman Brothers”). The Company had no fixed maturity investments available for sale in an unrealized loss position at September 30, 2008.

Other Items

• During the third quarter of 2008, the Company repurchased 1.6 million shares at an aggregate cost of $75.8 million. At September 30, 2008, $382.4 million remained available under the Company’s share repurchase program.
• The Company’s cash flows from operations were $177.5 million for the third quarter of 2008, compared to $284.9 million for the third quarter of 2007.

This press release includes certain non-GAAP financial measures including "operating (loss) income”, "operating (loss) income per common share – diluted”, "operating return on average common equity – annualized”, "managed catastrophe premium” and "tangible book value per common share”. A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.

Please refer to the Investor Information – Financial Reports – Financial Supplements section of the Company's website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.

RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, October 29, 2008 at 9:30 a.m. (ET) to discuss this release. Live broadcast of the conference call will be available through the Investor Section of RenaissanceRe’s website at www.renre.com.

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company’s business consists of two segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain joint ventures and other investments managed by the Company’s subsidiary RenaissanceRe Ventures Ltd., and (2) Individual Risk, which includes primary insurance and quota share reinsurance.

Cautionary Statement under "Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this news release contain information about the Company's future business prospects. These statements may be considered "forward-looking”. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, as amended, for the year ended December 31, 2007 and its quarterly reports on Form 10-Q for the quarters ending March 31, 2008 and June 30, 2008.

RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Statements of Operations
For the three and nine months ended September 30, 2008 and 2007
(in thousands of United States Dollars, except per share amounts)
(Unaudited)
		Three months ended								Nine months ended
		September 30, 2008				September 30, 2007				September 30, 2008				September 30, 2007
Revenues
Gross premiums written		$	239,806			$	208,821			$	1,574,419			$	1,687,410
Net premiums written		$	194,408			$	149,163			$	1,211,546			$	1,330,032
Decrease (increase) in unearned premiums			184,934				217,894				(146,717	)			(241,903	)
Net premiums earned			379,342				367,057				1,064,829				1,088,129
Net investment income			15,767				95,594				106,955				321,749
Net foreign exchange gains (losses)			3,448				(5,424	)			8,153				(630	)
Equity in earnings (losses) of other ventures			2,333				(23,986	)			13,455				(3,610	)
Other income (loss)			2,258				(10,008	)			10,246				(17,709	)
Net realized (losses) gains on investments			(87,610	)			1,592				(122,441	)			(5,889	)
Total revenues			315,538				424,825				1,081,197				1,382,040
Expenses
Net claims and claim expenses incurred			535,347				131,700				731,720				416,546
Acquisition expenses			54,231				63,719				154,272				186,957
Operational expenses			30,296				27,126				93,903				82,177
Corporate expenses			3,116				7,158				18,930				19,089
Interest expense			5,379				7,226				18,120				26,400
Total expenses			628,369				236,929				1,016,945				731,169
(Loss) income before minority interest and taxes			(312,831	)			187,896				64,252				650,871
Minority interest - DaVinciRe			91,977				(43,820	)			10,321				(110,326	)
(Loss) income before taxes			(220,854	)			144,076				74,573				540,545
Income tax benefit (expense)			455				(101	)			(936	)			(888	)
Net (loss) income			(220,399	)			143,975				73,637				539,657
Dividends on preference shares			(10,575	)			(10,575	)			(31,725	)			(32,286	)
Net (loss) income (attributable) available to common shareholders		$	(230,974	)		$	133,400			$	41,912			$	507,371
Operating (loss) income (attributable) available to common shareholders per Common Share - diluted (1) (2)		$	(2.35	)		$	2.33			$	2.56			$	7.60
Net (loss) income (attributable) available to common shareholders per Common Share - basic		$	(3.79	)		$	1.89			$	0.66			$	7.14
Net (loss) income (attributable) available to common shareholders per Common Share - diluted (2)		$	(3.79	)		$	1.85			$	0.65			$	7.02
Average shares outstanding - basic			60,943				70,575				63,131				71,038
Average shares outstanding - diluted (2)			61,694				71,945				64,125				72,296
Net claims and claim expense ratio			141.1	%			35.9	%			68.7	%			38.3	%
Underwriting expense ratio			22.3	%			24.7	%			23.3	%			24.7	%
Combined ratio			163.4	%			60.6	%			92.0	%			63.0	%
Operating return on average common equity - annualized(1)			(22.4	%)			23.6	%			8.2	%			27.1	%
(1) See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
(2) In accordance with FAS 128, diluted earnings per share calculations use average common shares outstanding - basic, when in a net loss position.

RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)
		At
		September 30, 2008				December 31, 2007
		(Unaudited)				(Audited)
Assets
Fixed maturity investments available for sale, at fair value		$	3,645,294			$	3,914,363
Short term investments, at fair value			1,438,201				1,821,549
Other investments, at fair value			902,328				807,864
Investments in other ventures, under equity method			117,789				90,572
Total investments			6,103,612				6,634,348
Cash and cash equivalents			427,176				330,226
Premiums receivable			728,046				475,075
Ceded reinsurance balances			155,487				107,916
Losses recoverable			300,076				183,275
Accrued investment income			35,134				39,084
Deferred acquisition costs			114,038				104,212
Receivable for investments sold			368,313				144,037
Other secured assets			107,252				90,488
Other assets			178,163				171,457
Goodwill and other intangibles			71,942				6,237
Total assets		$	8,589,239			$	8,286,355
Liabilities, Minority Interest and Shareholders' Equity
Liabilities
Reserve for claims and claim expenses		$	2,433,420			$	2,028,496
Reserve for unearned premiums			757,624				563,336
Debt			450,000				451,951
Reinsurance balances payable			360,829				275,430
Payable for investments purchased			545,100				422,974
Other secured liabilities			106,420				88,920
Other liabilities			195,071				162,294
Total liabilities			4,848,464				3,993,401
Minority interest - DaVinciRe			699,534				815,451
Shareholders' Equity
Preference shares			650,000				650,000
Common shares			61,401				68,920
Additional paid-in capital			-				107,867
Accumulated other comprehensive income			16,544				44,719
Retained earnings			2,313,296				2,605,997
Total shareholders' equity			3,041,241				3,477,503
Total liabilities, minority interest and shareholders' equity		$	8,589,239			$	8,286,355
Book value per common share (unaudited)		$	38.94			$	41.03
Common shares outstanding			61,401				68,920

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars)
(Unaudited)
	Three months ended September 30, 2008
	Reinsurance				Individual Risk				Elimi- nations (1)				Other				Total
Gross premiums written	$	169,463			$	83,685			$	(13,342	)		$	-			$	239,806
Net premiums written	$	129,229			$	65,179								-			$	194,408
Net premiums earned	$	251,058			$	128,284								-			$	379,342
Net claims and claim expenses incurred		423,568				111,779								-				535,347
Acquisition expenses		34,469				19,762								-				54,231
Operational expenses		20,602				9,694								-				30,296
Underwriting loss	$	(227,581	)		$	(12,951	)							-				(240,532	)
Net investment income														15,767				15,767
Equity in earnings of other ventures														2,333				2,333
Other income														2,258				2,258
Interest and preference share dividends														(15,954	)			(15,954	)
Minority interest - DaVinciRe														91,977				91,977
Other items, net														787				787
Net realized losses on investments														(87,610	)			(87,610	)
Net loss attributable to common shareholders													$	9,558			$	(230,974	)
Net claims and claim expenses incurred - current accident year	$	454,187			$	117,157											$	571,344
Net claims and claim expenses incurred - prior accident years		(30,619	)			(5,378	)											(35,997	)
Net claims and claim expenses incurred - total	$	423,568			$	111,779											$	535,347
Net claims and claim expense ratio - current accident year		180.9	%			91.3	%											150.6	%
Net claims and claim expense ratio - prior accident years		(12.2	%)			(4.2	%)											(9.5	%)
Net claims and claim expense ratio - calendar year		168.7	%			87.1	%											141.1	%
Underwriting expense ratio		21.9	%			23.0	%											22.3	%
Combined ratio		190.6	%			110.1	%											163.4	%
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.
	Three months ended September 30, 2007
	Reinsurance				Individual Risk				Elimi- nations (1)				Other				Total
Gross premiums written	$	141,545			$	101,534			$	(34,258	)		$	-			$	208,821
Net premiums written	$	91,112			$	58,051								-			$	149,163
Net premiums earned	$	242,520			$	124,537								-			$	367,057
Net claims and claim expenses incurred		67,335				64,365								-				131,700
Acquisition expenses		32,122				31,597								-				63,719
Operational expenses		16,301				10,825								-				27,126
Underwriting income	$	126,762			$	17,750								-				144,512
Net investment income														95,594				95,594
Equity in losses of other ventures														(23,986	)			(23,986	)
Other loss														(10,008	)			(10,008	)
Interest and preference share dividends														(17,801	)			(17,801	)
Minority interest - DaVinciRe														(43,820	)			(43,820	)
Other items, net														(12,683	)			(12,683	)
Net realized gains on investments														1,592				1,592
Net income available to common shareholders													$	(11,112	)		$	133,400
Net claims and claim expenses incurred - current accident year	$	83,104			$	68,755											$	151,859
Net claims and claim expenses incurred - prior accident years		(15,769	)			(4,390	)											(20,159	)
Net claims and claim expenses incurred - total	$	67,335			$	64,365											$	131,700
Net claims and claim expense ratio - current accident year		34.3	%			55.2	%											41.4	%
Net claims and claim expense ratio - prior accident years		(6.5	%)			(3.5	%)											(5.5	%)
Net claims and claim expense ratio - calendar year		27.8	%			51.7	%											35.9	%
Underwriting expense ratio		20.0	%			34.1	%											24.7	%
Combined ratio		47.8	%			85.8	%											60.6	%
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.
RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Segment Information (cont'd.)
(in thousands of United States Dollars)
(Unaudited)
	Nine months ended September 30, 2008
	Reinsurance				Individual Risk				Elimi- nations (1)				Other				Total
Gross premiums written	$	1,100,984			$	479,351			$	(5,916	)		$	-			$	1,574,419
Net premiums written	$	825,336			$	386,210								-			$	1,211,546
Net premiums earned	$	709,571			$	355,258								-			$	1,064,829
Net claims and claim expenses incurred		490,757				240,963								-				731,720
Acquisition expenses		78,495				75,777								-				154,272
Operational expenses		64,497				29,406								-				93,903
Underwriting income	$	75,822			$	9,112								-				84,934
Net investment income														106,955				106,955
Equity in earnings of other ventures														13,455				13,455
Other income														10,246				10,246
Interest and preference share dividends														(49,845	)			(49,845	)
Minority interest - DaVinciRe														10,321				10,321
Other items, net														(11,713	)			(11,713	)
Net realized losses on investments														(122,441	)			(122,441	)
Net income available to common shareholders													$	(43,022	)		$	41,912
Net claims and claim expenses incurred - current accident year	$	582,624			$	279,748											$	862,372
Net claims and claim expenses incurred - prior accident years		(91,867	)			(38,785	)											(130,652	)
Net claims and claim expenses incurred - total	$	490,757			$	240,963											$	731,720
Net claims and claim expense ratio - current accident year		82.1	%			78.7	%											81.0	%
Net claims and claim expense ratio - prior accident years		(12.9	%)			(10.9	%)											(12.3	%)
Net claims and claim expense ratio - calendar year		69.2	%			67.8	%											68.7	%
Underwriting expense ratio		20.1	%			29.6	%											23.3	%
Combined ratio		89.3	%			97.4	%											92.0	%
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.
	Nine months ended September 30, 2007
	Reinsurance				Individual Risk				Elimi- nations (1)				Other				Total
Gross premiums written	$	1,263,727			$	463,241			$	(39,558	)		$	-			$	1,687,410
Net premiums written	$	995,686			$	334,346								-			$	1,330,032
Net premiums earned	$	723,286			$	364,843								-			$	1,088,129
Net claims and claim expenses incurred		221,990				194,556								-				416,546
Acquisition expenses		86,411				100,546								-				186,957
Operational expenses		50,943				31,234								-				82,177
Underwriting income	$	363,942			$	38,507								-				402,449
Net investment income														321,749				321,749
Equity in losses of other ventures														(3,610	)			(3,610	)
Other loss														(17,709	)			(17,709	)
Interest and preference share dividends														(58,686	)			(58,686	)
Minority interest - DaVinciRe														(110,326	)			(110,326	)
Other items, net														(20,607	)			(20,607	)
Net realized losses on investments														(5,889	)			(5,889	)
Net income available to common shareholders													$	104,922			$	507,371
Net claims and claim expenses incurred - current accident year	$	317,718			$	225,207											$	542,925
Net claims and claim expenses incurred - prior accident years		(95,728	)			(30,651	)											(126,379	)
Net claims and claim expenses incurred - total	$	221,990			$	194,556											$	416,546
Net claims and claim expense ratio - current accident year		43.9	%			61.7	%											49.9	%
Net claims and claim expense ratio - prior accident years		(13.2	%)			(8.4	%)											(11.6	%)
Net claims and claim expense ratio - calendar year		30.7	%			53.3	%											38.3	%
Underwriting expense ratio		19.0	%			36.1	%											24.7	%
Combined ratio		49.7	%			89.4	%											63.0	%
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Gross Premiums Written Analysis
(in thousands of United States Dollars)
(Unaudited)
		Three months ended								Nine months ended
Reinsurance Segment		September 30, 2008				September 30, 2007				September 30, 2008				September 30, 2007
Renaissance catastrophe premiums		$	97,839			$	84,271			$	614,124			$	665,211
Renaissance specialty premiums			28,408				39,536				126,826				240,384
Total Renaissance premiums			126,247				123,807				740,950				905,595
DaVinci catastrophe premiums			43,413				17,856				355,940				348,708
DaVinci specialty premiums			(197	)			(118	)			4,094				9,424
Total DaVinci premiums			43,216				17,738				360,034				358,132
Total Reinsurance premiums		$	169,463			$	141,545			$	1,100,984			$	1,263,727
Total specialty premiums		$	28,211			$	39,418			$	130,920			$	249,808
Total catastrophe premiums		$	141,252			$	102,127			$	970,064			$	1,013,919
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (1)			(293	)			-				55,370				63,725
Catastrophe premiums assumed from the Individual Risk segment			(13,342	)			(34,258	)			(5,916	)			(39,558	)
Total managed catastrophe premiums (2)			127,617				67,869				1,019,518				1,038,086
Managed premiums assumed for fully-collateralized joint ventures			(20	)			(938	)			(2,306	)			(60,301	)
Total managed catastrophe premiums, net of fully-collateralized joint ventures (2)		$	127,597			$	66,931			$	1,017,212			$	977,785
(1)Top Layer Re is accounted for under the equity method of accounting.
(2)See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
		Three months ended								Nine months ended
Individual Risk Segment		September 30, 2008				September 30, 2007				September 30, 2008				September 30, 2007
Multi-peril crop		$	11,881			$	22,171			$	220,330			$	150,112
Commercial property			24,863				26,361				116,546				143,879
Commercial multi-line			29,773				38,257				92,856				130,582
Personal lines property			17,168				14,745				49,619				38,668
Total Individual Risk premiums		$	83,685			$	101,534			$	479,351			$	463,241

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars)
(Unaudited)
	Three months ended								Nine months ended
	September 30, 2008				September 30, 2007				September 30, 2008				September 30, 2007
Fixed maturity investments available for sale	$	52,087			$	42,429			$	147,930			$	132,446
Short term investments		9,990				33,108				41,124				90,426
Other investments
Hedge funds and private equity investments		(15,080	)			16,978				(46,415	)			80,642
Other		(30,306	)			2,775				(32,884	)			17,726
Cash and cash equivalents		1,956				2,919				5,900				7,506
		18,647				98,209				115,655				328,746
Investment expenses		(2,880	)			(2,615	)			(8,700	)			(6,997	)
Net investment income		15,767				95,594				106,955				321,749
Gross realized gains		20,007				7,527				58,885				17,938
Gross realized losses		(8,809	)			(1,613	)			(30,563	)			(5,835	)
Other than temporary impairments		(98,808	)			(4,322	)			(150,763	)			(17,992	)
Net realized (losses) gains on investments		(87,610	)			1,592				(122,441	)			(5,889	)
Net change in unrealized holding gains on fixed maturity investments available for sale		(21,411	)			22,433				(32,930	)			6,890
Total investment result	$	(93,254	)		$	119,619			$	(48,416	)		$	322,750

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Investment Portfolio - Yield to Maturity and Credit Rating
(in thousands of United States Dollars)
(Unaudited)
											Credit Rating (1)
At September 30, 2008	Amortized Cost			Fair Value			% of Total Managed Investment Portfolio		Yield to Maturity		AAA			AA			A			BBB			Non- Invest- ment Grade			Not Rated
Short term investments	$	1,438,201		$	1,438,201		24.0%		3.6%		$	1,313,234		$	120,281		$	3,998		$	408		$	280		$	-
					100.0%							91.3%			8.4%			0.3%			0.0%			0.0%			0.0%
Fixed maturity investments available for sale
U.S. treasuries and agencies
U.S. treasuries		685,787			690,265		11.5%		2.4%			690,265			-			-			-			-			-
Agency debt
Fannie Mae & Freddie Mac		388,600			390,796		6.5%		4.0%			390,796			-			-			-			-			-
Other agencies		27,803			28,256		0.5%		3.7%			28,256			-			-			-			-			-
Total agency debt		416,403			419,052		7.0%		4.0%			419,052			-			-			-			-			-
Total U.S. treasuries and agencies		1,102,190			1,109,317		18.5%		3.0%			1,109,317			-			-			-			-			-
Non U.S. government		82,785			83,556		1.4%		5.9%			27,355			30,465			1,095			10,777			13,864			-
Corporate		738,023			740,013		12.4%		7.1%			79,597			346,956			171,802			82,729			58,929			-
Mortgage-backed securities
Residential mortgage-backed securities
Agency securities		702,139			708,269		11.8%		5.4%			708,269			-			-			-			-			-
Non-agency securities		159,431			160,289		2.7%		9.7%			160,289			-			-			-			-			-
Non-agency securities - Alt A		59,789			60,189		1.0%		12.8%			60,189			-			-			-			-			-
Non-agency securities - Sub-prime		-			-		0.0%		0.0%			-			-			-			-			-			-
Total residential mortgage-backed securities		921,359			928,747		15.5%		6.6%			928,747			-			-			-			-			-
Commercial Mortgage Backed Securities		435,000			435,000		7.3%		6.9%			435,000			-			-			-			-			-
Total mortgage-backed securities		1,356,359			1,363,747		22.8%		6.7%			1,363,747			-			-			-			-			-
Asset-backed securities
Auto		132,072			132,185		2.2%		6.0%			132,185			-			-			-			-			-
Credit cards		96,207			96,226		1.6%		5.6%			96,226			-			-			-			-			-
Other - Stranded cost		44,838			44,841		0.7%		5.8%			44,841			-			-			-			-			-
Other		75,289			75,409		1.3%		5.3%			75,409			-			-			-			-			-
Total asset-backed securities		348,406			348,661		5.8%		5.7%			348,661			-			-			-			-			-
Total securitized assets		1,704,765			1,712,408		28.6%		6.5%			1,712,408			-			-			-			-			-
Total fixed maturity investments available for sale		3,627,763			3,645,294		60.9%		5.6%			2,928,677			377,421			172,897			93,506			72,793			-
					100.0%							80.3%			10.4%			4.7%			2.6%			2.0%			0.0%
Other investments
Private equity partnerships					297,167		5.0%					-			-			-			-			-			297,167
Senior secured bank loan funds					272,752		4.6%					-			-			-			-			272,752			-
Hedge funds					115,345		1.9%					-			-			-			-			-			115,345
Non-U.S. fixed income funds					104,196		1.7%					-			-			-			69,991			34,205			-
Catastrophe bonds					83,434		1.4%					-			23,905			-			-			59,529			-
Miscellaneous other investments					29,434		0.5%					-			-			-			20,476			-			8,958
Total other investments					902,328		15.1%					-			23,905			-			90,467			366,486			421,470
Total managed investment portfolio				$	5,985,823		100.0%				$	4,241,911		$	521,607		$	176,895		$	184,381		$	439,559		$	421,470
					100.0%							70.9%			8.7%			3.0%			3.1%			7.3%			7.0%
(1)The credit ratings included in this table are those assigned by Standard & Poor’s Corporation. The Company has grouped short term investments with an A-1+ and A-1 short-term issue credit rating as AAA, short term investments with A-2 short-term issue credit rating as AA and short term investments with an A-3 short-term issue credit rating as A.

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Fixed Maturity Investments Available for Sale - Securitized Assets
(in thousands of United States Dollars)
(Unaudited)
						% of Total Managed Investment Portfolio
						Vintage
At September 30, 2008		Fair Value		% of Total Managed Investment Portfolio		2008		2007		2006		2005		2004		2003 & Prior		% of Total Securitized Assets		Average Duration
Total managed investment portfolio		$ 5,985,823		100.0%
Mortgage-backed securities
Residential mortgage-backed securities
Agency securities		708,269		11.8%		8.0%		1.6%		1.0%		0.6%		0.3%		0.4%		41.4%		4.6
Non-agency securities		160,289		2.7%		0.0%		0.5%		1.0%		0.4%		0.5%		0.2%		9.4%		2.9
Non-agency securities - Alt A		60,189		1.0%		0.0%		0.2%		0.1%		0.4%		0.2%		0.1%		3.5%		2.3
Non-agency securities - Sub-prime		-		0.0%		0.0%		0.0%		0.0%		0.0%		0.0%		0.0%		0.0%		-
Total non-agency securities		220,478		3.7%		0.0%		0.7%		1.1%		0.8%		0.7%		0.3%		12.9%		2.8
Total residential mortgage-backed securities		928,747		15.5%		8.0%		2.3%		2.1%		1.4%		1.0%		0.7%		54.2%		4.1
Commercial mortgage-backed securities		435,000		7.3%		0.1%		1.5%		0.9%		1.5%		0.6%		2.6%		25.4%		2.8
Total mortgage-backed securities		1,363,747		22.8%		8.1%		3.8%		3.0%		2.9%		1.6%		3.3%		79.6%		3.7
Asset-backed securities
Auto		132,185		2.2%		0.3%		0.1%		1.1%		0.7%		0.0%		0.0%		7.7%		0.8
Credit cards		96,226		1.6%		0.0%		0.4%		0.3%		0.3%		0.0%		0.5%		5.6%		1.6
Other - Stranded cost		44,841		0.7%		0.0%		0.0%		0.0%		0.3%		0.0%		0.4%		2.6%		1.6
Other		75,409		1.3%		0.7%		0.2%		0.0%		0.2%		0.1%		0.1%		4.4%		0.7
Total asset-backed securities		348,661		5.8%		1.0%		0.7%		1.4%		1.5%		0.1%		1.0%		20.4%		1.1
Total securitized assets		$ 1,712,408		28.6%		9.1%		4.5%		4.4%		4.4%		1.7%		4.3%		100.0%		3.2

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Investment Portfolio - Fixed Maturity Investments Available for Sale - Corporate
(in thousands of United States Dollars)
(Unaudited)
		At September 30, 2008
Sector		Total			AAA			AA			A			BBB			Non-Investment Grade
Financials		$	495,477		$	77,531		$	324,632		$	72,756		$	9,645		$	10,913
Industrial, utilities and energy			90,036			2,066			2,436			41,938			25,599			17,997
Consumer			74,770			-			19,888			23,060			15,786			16,036
Communications and technology			66,641			-			-			30,115			26,657			9,869
Basic materials			13,089			-			-			3,933			5,042			4,114
Total corporate fixed maturity investments available for sale		$	740,013		$	79,597		$	346,956		$	171,802		$	82,729		$	58,929

RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Investment Portfolio Short Term Investments and Fixed Maturity Investments Available for Sale - Top 10 Corporate Issuers by Fair Value
(in thousands of United States Dollars)
(Unaudited)
		At September 30, 2008
Issuer		Total			Short term investments			Fixed maturity investments available for sale
Bank of America Corporation		$	71,836		$	2,299		$	69,537
General Electric Co.			65,136			10,997			54,139
Citigroup, Inc.			61,741			1,993			59,748
Goldman Sachs Group, Inc.			48,268			-			48,268
JP Morgan Chase & Co.			49,733			11,180			38,553
US Bancorp			29,231			8,300			20,931
PNC Financial Services Group Inc.			21,025			19,771			1,254
Royal Bank of Canada			17,798			11,962			5,836
Barclays Bank PLC			17,726			14,160			3,566
Wells Fargo & Company			17,531			-			17,531
Total		$	400,025		$	80,662		$	319,363

Comments on Regulation G

In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures in this Press Release within the meaning of Regulation G. The Company has provided these financial measurements in previous investor communications and the Company’s management believes that these measurements are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for the comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.

The Company uses "operating (loss) income” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. "Operating (loss) income” as used herein differs from "net (loss) income (attributable) available to common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized gains and losses on the Company’s investments and, in the third and fourth quarters of 2007, net unrealized gains and losses on credit derivatives issued by entities included in investments in other ventures, under equity method. Prior to the third quarter of 2007, the Company had no net unrealized gains and losses on credit derivatives issued by entities included in investments in other ventures, under equity method. In the presentation below, the only adjustments in respect of unrealized gains and losses reflect unrealized mark-to-market losses on credit derivatives and other credit-related products issued by ChannelRe Holdings Ltd. ("ChannelRe”), a financial guarantee reinsurer whose investment is accounted for by the Company under the equity method. The Company believes that the prevailing convention among financial guarantee insurers, reinsurers and other market participants, such as ChannelRe, is to exclude from operating (loss) income such unrealized gains and losses attributable to credit derivatives and other credit-related products. The Company's management believes that "operating (loss) income” is useful to investors because it more accurately measures and predicts the Company’s results of operations by removing the variability arising from fluctuations in the Company’s investment portfolio and credit derivatives issued by entities included in investments in other ventures, under equity method, which are not considered by management to be relevant indicators of business operations. The Company also uses "operating (loss) income” to calculate "operating (loss) income per common share – diluted” and "operating return on average common equity – annualized”. The following is a reconciliation of: 1) net (loss) income (attributable) available to common shareholders to operating (loss) income (attributable) available to common shareholders; 2) net (loss) income (attributable) available to common shareholders per common share – diluted to operating (loss) income (attributable) available to common shareholders per common share – diluted; and 3) return on average common equity – annualized to operating return on average common equity – annualized:

		Three months ended								Nine months ended
(in thousands of United States dollars, except for per share amounts)		September 30, 2008				September 30, 2007				September 30, 2008				September 30, 2007
Net (loss) income (attributable) available to common shareholders		$	(230,974	)		$	133,400			$	41,912			$	507,371
Adjustment for net realized losses (gains) on investments			87,610				(1,592	)			122,441				5,889
Adjustment for net unrealized losses on credit derivatives issued by entities included in investments in other ventures, under equity method			-				35,970				-				35,970
Operating (loss) income (attributable) available to common shareholders		$	(143,364	)		$	167,778			$	164,353			$	549,230
Net (loss) income (attributable) available to common shareholders per common share - diluted (1)		$	(3.79	)		$	1.85			$	0.65			$	7.02
Adjustment for net realized losses (gains) on investments			1.44				(0.02	)			1.91				0.08
Adjustment for net unrealized losses on credit derivatives issued by entities included in investments in other ventures, under equity method			-				0.50				-				0.50
Operating (loss) income (attributable) available to common shareholders per common share - diluted (1)		$	(2.35	)		$	2.33			$	2.56			$	7.60
Return on average common equity - annualized			(36.1	%)			18.8	%			2.1	%			25.0	%
Adjustment for net realized losses (gains) on investments			13.7	%			(0.2	%)			6.1	%			0.3	%
Adjustment for net unrealized losses on credit derivatives issued by entities included in investments in other ventures, under equity method			-				5.0	%			-				1.8	%
Operating return on average common equity - annualized			(22.4	%)			23.6	%			8.2	%			27.1	%
(1) In accordance with FAS 128, diluted earnings per share calculations use average common shares outstanding - basic, when in a net loss position.

The Company has also included in this Press Release "managed catastrophe premiums” and "managed catastrophe premiums, net of fully-collateralized joint ventures”. "Managed catastrophe premiums” is defined as gross catastrophe premiums written by Renaissance Reinsurance and its related joint ventures. "Managed catastrophe premiums” differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting. "Managed catastrophe premiums, net of fully-collateralized joint ventures” differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to: 1) the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting; and 2) the deduction of catastrophe premiums that are written by the Company and ceded directly to the Company’s fully-collateralized joint ventures which include Starbound Reinsurance Ltd., Starbound Reinsurance II Ltd. and Timicuan Reinsurance Ltd. The Company’s management believes "managed catastrophe premiums” is useful to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures. The Company believes "managed catastrophe premiums, net of fully-collateralized joint ventures” is also a useful measure to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures, net of catastrophe premiums written directly on behalf of the Company’s fully-collateralized joint ventures.

The Company has also included in this Press Release "tangible book value per common share plus accumulated dividends”. This is defined as book value per common share excluding goodwill and other intangibles, plus accumulated dividends. "Tangible book value per common share plus accumulated dividends” differs from book value per common share, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of goodwill and other intangibles and the inclusion of accumulated dividends. The following is a reconciliation of book value per common share to tangible book value per common share plus accumulated dividends:

		At
		Sept. 30, 2008			June 30, 2008			March 31, 2008			Dec. 31, 2007			Sept. 30, 2007
Book value per common share		$	38.94		$	43.32		$	42.14		$	41.03		$	40.53
Adjustment for goodwill and other intangibles (1)			(1.92)			(1.18)			(0.09)			(0.09)			(0.09)
Tangible book value per common share		$	37.02		$	42.14		$	42.05		$	40.94		$	40.44
Adjustment for accumulated dividends			7.69			7.46			7.23			7.00			6.78
Tangible book value per common share plus accumulated dividends		$	44.71		$	49.60		$	49.28		$	47.94		$	47.22
(1) At September 30, 2008, goodwill and other intangibles includes $46.4 million of goodwill and other intangibles related to the Company's third quarter of 2008 investment in the Tower Hill Companies which is recorded in investments in other ventures, under equity method.