RenaissanceRe Reports Record Operating Income of $247.0 Million for the Third Quarter of 2006 or $3.42 Per Common Share; Record Net Income of $251.1 Million or $3.48 Per Common Share.

RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported $247.0 million in third quarter operating income available to common shareholders compared to a $292.5 million operating loss attributable to common shareholders in the third quarter of 2005. Operating income excludes net realized investment gains of $4.2 million and $5.2 million in the third quarters of 2006 and 2005, respectively. Operating income per common share was $3.42 in the third quarter of 2006, compared to an operating loss per common share of $4.14 in the third quarter of 2005. Net income available to common shareholders was $251.1 million or $3.48 per common share in the quarter, compared to a net loss attributable to common shareholders of $287.3 million or $4.07 per common share for the same quarter of 2005. The Company’s third quarter 2006 results benefited from light insured catastrophe loss activity compared to the third quarter of 2005 as well as a $31.4 million net positive impact resulting from the commutation of certain assumed and ceded reinsurance contracts in the quarter. Neill A. Currie, CEO, commented: "We are very pleased to report another strong quarter with record results. Our core property cat business generated exceptional earnings, and our book value per share grew by over 12% this quarter. Our annualized compounded growth in book value per share plus accumulated dividends over the last ten years is 17%, reflecting our continued commitment to generate long-term growth in book value for our shareholders.” Mr. Currie added: "This year we met the demands of the market by providing capacity when it was most needed. We currently expect the demand for capacity to continue into 2007 and our priorities remain clear: maintaining a focused and disciplined approach to underwriting that enables us to achieve superior long-term results.” THIRD QUARTER 2006 RESULTS Premiums Gross premiums written for the third quarter of 2006 were $257.8 million, compared to $382.8 million for the same quarter of 2005. As described in more detail below, gross premiums written in the third quarter of 2005 reflect substantial loss related premium of $72.2 million as a result of the large hurricanes in the third quarter of 2005. Net premiums written for the third quarter of 2006 were $162.7 million, compared to $290.1 million for the same quarter of 2005. Net premiums earned were $367.1 million for the third quarter of 2006, compared to $348.3 million in the third quarter of 2005. Reinsurance Segment Gross premiums written include $91.5 million in gross premiums written for the Company’s Reinsurance segment in the third quarter of 2006, compared to $214.5 million for the same quarter of 2005. Gross premiums written were impacted by several reinsurance contracts which were commuted during the third quarter of 2006 which resulted in the return of $28.3 million of premium. The third quarter of 2005 included $72.2 million in loss related premium which arose as a result of the large hurricanes that occurred in that period. Net premiums written include $77.1 million in net premiums written for the Company’s Reinsurance segment in the third quarter of 2006, compared to $174.3 million for the same quarter of 2005. Net premiums earned include $236.3 million in net premiums earned for the Company’s Reinsurance segment in the third quarter of 2006, compared to $230.5 million for the same quarter of 2005. Premiums for the third quarter of 2006 include $10.7 million of gross premiums written, $1.2 million of net premiums written and $72.1 million of net premiums earned by the Company’s consolidated joint venture, DaVinci Reinsurance Ltd. ("DaVinci”), compared to $19.9 million of gross premiums written, $18.9 million of net premiums written and $49.5 million of net premiums earned by DaVinci during the third quarter of 2005. Individual Risk Segment Gross premiums written include $166.2 million in gross premiums written for the Company’s Individual Risk segment in the third quarter of 2006, compared to $168.3 million for the same quarter of 2005. Net premiums written include $85.6 million in net premiums written for the Company’s Individual Risk segment in the third quarter of 2006, compared to $115.8 million for the same quarter of 2005. Net premiums earned include $130.8 million in net premiums earned for the Company’s Individual Risk segment in the third quarter of 2006, compared to $117.8 million for the same quarter of 2005. Underwriting Ratios For the third quarter of 2006, the Company generated a combined ratio of 36.5%, a loss ratio of 11.6% and an underwriting expense ratio of 24.9%, compared to a combined ratio, loss ratio and underwriting expense ratio of 215.7%, 190.2% and 25.5%, respectively, for the third quarter of 2005. The significant decrease in the combined ratio and loss ratio during the third quarter of 2006 compared to the third quarter of 2005 was principally the result of light catastrophe loss activity experienced in the third quarter of 2006 compared with the large hurricanes in the third quarter of 2005. During the third quarter of 2006, the Company recorded favorable development on prior year reserves of $53.4 million or a decrease of 14.5 percentage points in the Company’s quarterly loss ratio. This compares to favorable development of $163.6 million in the third quarter of 2005 which decreased the Company’s third quarter 2005 loss ratio by 47.0 percentage points. Net paid losses for the quarter were $164.5 million compared to $149.4 million in the third quarter of 2005. Reinsurance Segment Analysis of net claims and claim expenses incurred for the current quarter Three months ended   September 30, 2006 September 30, 2005 (in millions of U.S. dollars) Incurred Ratio Incurred Ratio   Net claims and claim expenses incurred   Third quarter 2006 commutations - current year $ (13.2) (5.5%) $ -  -  - prior year   (44.4) (18.8%)   -  -    Total third quarter 2006 commutations $ (57.6) (24.3%) -  -    Third quarter 2005 hurricanes -  -  571.3  247.9%   Third quarter 2005 specialty reserve review -  -  (129.9) (56.4%)   Losses excluding hurricanes, specialty reserve review and commutations   16.8  7.1%   70.8  30.7%   Total net claims and claim expenses incurred $ (40.8) (17.2%) $ 512.2  222.2% The Company’s Reinsurance segment generated a combined ratio of 2.4%, a negative loss ratio of (17.2%) and an underwriting expense ratio of 19.6% for the third quarter of 2006, compared to a combined ratio of 241.8%, a loss ratio of 222.2% and an underwriting expense ratio of 19.6% for the third quarter of 2005. The results for the third quarter of 2006 include $17.1 million of current accident year net claims and claim expenses resulting in a current accident year loss ratio of 7.2%, compared to current accident year net claims and claim expenses and a current accident year loss ratio of $665.6 million and 288.8%, respectively, for the third quarter of 2005. As noted above, the decrease in current accident year net claims and claim expenses is a direct result of the light catastrophe loss activity experienced during the third quarter of 2006 compared to the third quarter of 2005. During the third quarter of 2006, the Company’s Reinsurance segment experienced $57.9 million of favorable development on prior year reserves or a decrease of 24.4 percentage points to the Company’s Reinsurance segment quarterly loss ratio. Included in the favorable development is a $44.4 million decrease in prior year reserves as a result of the commutation of certain assumed and ceded reinsurance contracts during the quarter. The net positive impact to the Company of these commutations was $31.4 million, after considering return premium, expenses, net claims and claim expenses and minority interest. Included in the underwriting result in the third quarter of 2005 was a net reduction in prior year claims incurred of $153.5 million which reduced the Company’s third quarter 2005 Reinsurance segment loss ratio by 66.6 percentage points. The favorable development in the third quarter of 2005 was principally the result of the Company’s specialty reserve review which resulted in a $129.9 million decrease of prior year reserves and decreased the Company’s net loss by $117.6 million, after minority interest. Individual Risk Segment Analysis of net claims and claim expenses incurred for the current quarter Three months ended   September 30, 2006 September 30, 2005 (in millions of U.S. dollars) Incurred Ratio Incurred Ratio   Net claims and claim expenses incurred   Third quarter 2005 hurricanes $ -  -  $ 77.6  65.9%   Losses excluding hurricanes   83.2  63.6%   72.9  61.9%   Total net claims and claim expenses incurred $ 83.2  63.6% $ 150.5  127.8% The Company’s Individual Risk segment generated a combined ratio of 98.0%, a loss ratio of 63.6% and an underwriting expense ratio of 34.4% for the third quarter of 2006, compared to a combined ratio, a loss ratio and underwriting expense ratio of 164.8%, 127.8% and 37.0%, respectively, for the third quarter of 2005. The results for the third quarter of 2006 include $78.7 million of current accident year net claims and claim expenses resulting in a current accident year loss ratio of 60.2%, compared to current accident year net claims and claim expenses and a current accident year loss ratio of $160.7 million and 136.4%, respectively, in the third quarter of 2005. The Individual Risk segment experienced lower loss ratios as a result of light catastrophe loss activity occurring during the third quarter of 2006 compared to the third quarter of 2005. During the quarter, the Company’s Individual Risk segment experienced $4.5 million of adverse development on prior year reserves or an increase of 3.4 percentage points to the Company’s Individual Risk segment quarterly loss ratio. In the third quarter of 2005, the Company experienced $10.2 million of favorable development on prior year reserves or a decrease of 8.6 percentage points to the Company’s Individual Risk segment quarterly loss ratio. Net Investment Income and Net Realized Gains and Losses on Investments Net investment income for the third quarter of 2006 was $80.4 million, compared to $61.1 million for the same quarter in 2005, principally reflecting a higher yield on the Company’s portfolio of fixed maturity investments available for sale and short term investments, combined with an increased level of average invested assets. Other investments, which include the Company’s hedge fund and private equity investments, generated $12.8 million of net investment income in the third quarter of 2006 compared with $21.2 million in the third quarter of 2005. During the third quarter of 2006, the Company recorded $4.2 million of net realized gains compared to $5.2 million of net realized gains in the third quarter of 2005. Included in net realized gains are other than temporary impairment charges of $0.5 million and $0.7 million in the third quarters of 2006 and 2005, respectively, with respect to the Company’s portfolio of fixed maturity investments available for sale. Equity in Earnings of Other Ventures Equity in earnings of other ventures generated $10.1 million in income in the third quarter of 2006 compared to $7.6 million in income in the third quarter of 2005. The increase was principally due to a $1.9 million, $0.4 million and $0.9 million increase in the equity in earnings from ChannelRe Holdings Ltd., Tower Hill Holdings Inc. and Starbound Holdings Ltd., respectively, offset by a $0.8 million decrease in the equity in earnings of Top Layer Reinsurance Ltd. ("Top Layer Re”), compared to the third quarter of 2005. Other Items Corporate expenses of $5.1 million were incurred during the third quarter of 2006 compared to $21.8 million in the third quarter of 2005. The decrease in such expenses principally relates to the difference in costs incurred related to the Company’s internal review and the ongoing investigations into the Company and certain of its present and former executive officers by governmental authorities. The Company’s cash flows from operations were $176.9 million for the third quarter of 2006, compared to $117.1 million for the third quarter of 2005. Shareholders’ equity attributable to common shareholders was $2.3 billion at September 30, 2006, compared to $1.8 billion at December 31, 2005. Book value per common share at September 30, 2006 was $31.86, compared to $24.52 per common share at December 31, 2005. This press release includes certain non-GAAP financial measures including "operating income (loss) available (attributable) to common shareholders,” "operating income (loss) available (attributable) to common shareholders per common share – diluted,” "operating return on average common equity, annualized,” "managed catastrophe premiums” and "managed catastrophe premiums net of fully-collateralized joint ventures.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. RenaissanceRe Holdings Ltd. will host a conference call on Tuesday, October 31, 2006 at 9:00 a.m. (EST) 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. Our business consists of two segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain joint ventures and other investments managed by our 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 for the year ended December 31, 2005 and its quarterly reports on Form 10-Q for the quarters ending March 31, 2006 and June 30, 2006. RenaissanceRe Holdings Ltd. and Subsidiaries Summary Consolidated Statements of Operations For the three and nine months ended September 30, 2006 and 2005 (in thousands of United States Dollars, except per share amounts) (Unaudited)   Three months ended Nine months ended September 30, 2006 September 30, 2005 September 30, 2006 September 30, 2005   Revenues Gross premiums written $ 257,752  $ 382,790  $ 1,748,695  $ 1,520,606    Net premiums written $ 162,695  $ 290,124  $ 1,372,774  $ 1,293,806  Decrease (increase) in unearned premiums 204,381  58,224  (223,085) (305,204)   Net premiums earned 367,076  348,348  1,149,689  988,602  Net investment income 80,427  61,142  234,873  158,126  Net foreign exchange (losses) gains (2,160) 1,729  (1,578) 9,577  Equity in earnings of other ventures 10,131  7,623  25,904  22,988  Other income (loss) 2,006  (1,256) 243  (1,566) Net realized gains (losses) on investments 4,151  5,192  (36,953) (3,414)   Total revenues 461,631  422,778  1,372,178  1,174,313    Expenses Net claims and claim expenses incurred 42,436  662,729  348,950  973,176  Acquisition expenses 63,998  65,955  207,409  163,037  Operational expenses 27,364  22,859  77,351  65,079  Corporate expenses 5,121  21,815  16,431  41,848  Interest expense 9,492  6,936  29,163  20,508    Total expenses 148,411  780,294  679,304  1,263,648    Income (loss) before minority interest and taxes 313,220  (357,516) 692,874  (89,335) Minority interest - DaVinciRe 52,830  (78,978) 105,494  (44,311)   Income (loss) before taxes 260,390  (278,538) 587,380  (45,024) Income tax expense (616) -  (893) -    Net income (loss) 259,774  (278,538) 586,487  (45,024) Dividends on preference shares 8,662  8,758  25,987  25,987    Net income (loss) available (attributable) to common shareholders $ 251,112  $ (287,296) $ 560,500  $ (71,011)   Operating income (loss) available (attributable) to common shareholders per Common Share - diluted (1), (2) $ 3.42  $ (4.14) $ 8.30  $ (0.96)   Net income (loss) available (attributable) to common shareholders per Common Share - basic $ 3.53  $ (4.07) $ 7.89  $ (1.01) Net income (loss) available (attributable) to common shareholders per Common Share - diluted (2) $ 3.48  $ (4.07) $ 7.79  $ (1.01)   Average shares outstanding - basic 71,093  70,632  71,026  70,525  Average shares outstanding - diluted (2) 72,115  70,632  71,942  70,525    Net claims and claim expense ratio 11.6% 190.2% 30.4% 98.4% Underwriting expense ratio 24.9% 25.5% 24.8% 23.1%   Combined ratio 36.5% 215.7% 55.2% 121.5%   Operating return on average common equity, annualized (1) 45.6% (54.2%) 39.8% (4.2%)   (1) Excludes net realized gains (losses) on investments (see - "Comments on Regulation G"). (2) In accordance with SFAS 128, 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, 2006 December 31, 2005 (Unaudited) (Audited) Assets Fixed maturity investments available for sale, at fair value $ 3,176,045  $ 2,872,294  Short term investments, at cost 1,841,330  1,653,618  Other investments, at fair value 559,256  586,467  Investments in other ventures, under equity method 195,787  178,774    Total investments 5,772,418  5,291,153  Cash and cash equivalents 245,817  174,001  Premiums receivable 623,869  363,105  Ceded reinsurance balances 232,439  57,134  Losses recoverable 394,335  673,190  Accrued investment income 38,437  25,808  Deferred acquisition costs 138,922  107,951  Other assets 93,320  178,919    Total assets $ 7,539,557  $ 6,871,261    Liabilities, Minority Interest and Shareholders' Equity Liabilities Reserve for claims and claim expenses $ 2,155,213  $ 2,614,551  Reserve for unearned premiums 900,133  501,744  Debt 410,000  500,000  Subordinated obligation to capital trust 103,093  103,093  Reinsurance balances payable 437,653  292,307  Other liabilities 123,827  142,815    Total liabilities 4,129,919  4,154,510    Minority interest - DaVinciRe 612,431  462,911    Shareholders' Equity Preference shares 500,000  500,000  Common shares and additional paid-in capital 358,700  351,285  Accumulated other comprehensive income 25,472  4,760  Retained earnings 1,913,035  1,397,795    Total shareholders' equity 2,797,207  2,253,840    Total liabilities, minority interest and shareholders' equity $ 7,539,557  $ 6,871,261    Book value per common share $ 31.86  $ 24.52    Common shares outstanding 72,108  71,523  RenaissanceRe Holdings Ltd. and Subsidiaries Unaudited Supplemental Financial Data - Segment Information (in thousands of United States Dollars)                     Three months ended September 30, 2006 Reinsurance Individual Risk Other Total   Gross premiums written (1) $ 91,514  $ 166,238  $ -  $ 257,752    Net premiums written $ 77,062  $ 85,633  -  $ 162,695    Net premiums earned $ 236,310  $ 130,766  -  $ 367,076  Net claims and claim expenses incurred (40,756) 83,192  -  42,436  Acquisition expenses 27,890  36,108  -  63,998  Operational expenses   18,495    8,869    -    27,364    Underwriting income $ 230,681  $ 2,597  -  233,278  Net investment income 80,427  80,427  Equity in earnings of other ventures 10,131  10,131  Other income 2,006  2,006  Interest and preference share dividends (18,154) (18,154) Minority interest - DaVinciRe (52,830) (52,830) Other items, net (7,897) (7,897) Net realized gains on investments   4,151    4,151    Net income available to common shareholders $ 17,834  $ 251,112    Net claims and claim expenses incurred - current accident year $ 17,131  $ 78,736  $ 95,867  Net claims and claim expenses incurred - prior years   (57,887)   4,456    (53,431)   Net claims and claim expenses incurred - total $ (40,756) $ 83,192  $ 42,436    Net claims and claim expense ratio - accident year   7.2%   60.2%   26.1%   Net claims and claim expense ratio - calendar year (17.2%) 63.6% 11.6% Underwriting expense ratio   19.6%   34.4%   24.9%   Combined ratio   2.4%   98.0%   36.5%   (1) Reinsurance segment gross premiums written excludes $31.8 million of premiums assumed from the Individual Risk segment.                                       Three months ended September 30, 2005 Reinsurance Individual Risk Other Total   Gross premiums written (1) $ 214,471  $ 168,319  $ -  $ 382,790    Net premiums written $ 174,307  $ 115,817  -  $ 290,124    Net premiums earned $ 230,519  $ 117,829  -  $ 348,348  Net claims and claim expenses incurred 512,190  150,539  -  662,729  Acquisition expenses 28,756  37,199  -  65,955  Operational expenses   16,445    6,414    -    22,859    Underwriting loss $ (326,872) $ (76,323) -  (403,195) Net investment income 61,142  61,142  Equity in earnings of other ventures 7,623  7,623  Other loss (1,256) (1,256) Interest and preference share dividends (15,694) (15,694) Minority interest - DaVinciRe 78,978  78,978  Other items, net (20,086) (20,086) Net realized gains on investments   5,192    5,192    Net loss attributable to common shareholders $ 115,899  $ (287,296)   Net claims and claim expenses incurred - current accident year $ 665,644  $ 160,700  $ 826,344  Net claims and claim expenses incurred - prior years   (153,454)   (10,161)   (163,615)   Net claims and claim expenses incurred - total $ 512,190  $ 150,539  $ 662,729    Net claims and claim expense ratio - accident year   288.8%   136.4%   237.2%   Net claims and claim expense ratio - calendar year 222.2% 127.8% 190.2% Underwriting expense ratio   19.6%   37.0%   25.5%   Combined ratio   241.8%   164.8%   215.7%   (1) Reinsurance segment gross premiums written excludes $11.1 million of premiums assumed from the Individual Risk segment.                     RenaissanceRe Holdings Ltd. and Subsidiaries Unaudited Supplemental Financial Data - Segment Information (cont'd.) (in thousands of United States Dollars)                     Nine months ended September 30, 2006 Reinsurance Individual Risk Other Total   Gross premiums written (1) $ 1,200,904  $ 547,791  $ -  $ 1,748,695    Net premiums written $ 987,077  $ 385,697  -  $ 1,372,774    Net premiums earned $ 727,744  $ 421,945  -  $ 1,149,689  Net claims and claim expenses incurred 93,869  255,081  -  348,950  Acquisition expenses 87,487  119,922  -  207,409  Operational expenses   50,802    26,549    -    77,351    Underwriting income $ 495,586  $ 20,393  -  515,979  Net investment income 234,873  234,873  Equity in earnings of other ventures 25,904  25,904  Other income 243  243  Interest and preference share dividends (55,150) (55,150) Minority interest - DaVinciRe (105,494) (105,494) Other items, net (18,902) (18,902) Net realized losses on investments   (36,953)   (36,953)   Net income available to common shareholders $ 44,521  $ 560,500    Net claims and claim expenses incurred - current accident year $ 193,620  $ 261,995  $ 455,615  Net claims and claim expenses incurred - prior years   (99,751)   (6,914)   (106,665)   Net claims and claim expenses incurred - total $ 93,869  $ 255,081  $ 348,950    Net claims and claim expense ratio - accident year   26.6%   62.1%   39.6%   Net claims and claim expense ratio - calendar year 12.9% 60.5% 30.4% Underwriting expense ratio   19.0%   34.7%   24.8%   Combined ratio   31.9%   95.2%   55.2%   (1) Reinsurance segment gross premiums written excludes $68.5 million of premiums assumed from the Individual Risk segment.                                       Nine months ended September 30, 2005 Reinsurance Individual Risk Other Total   Gross premiums written (1) $ 1,023,094  $ 497,512  $ -  $ 1,520,606    Net premiums written $ 886,917  $ 406,889  -  $ 1,293,806    Net premiums earned $ 637,540  $ 351,062  -  $ 988,602  Net claims and claim expenses incurred 680,251  292,925  -  973,176  Acquisition expenses 62,567  100,470  -  163,037  Operational expenses   48,056    17,023    -    65,079    Underwriting loss $ (153,334) $ (59,356) -  (212,690) Net investment income 158,126  158,126  Equity in earnings of other ventures 22,988  22,988  Other loss (1,566) (1,566) Interest and preference share dividends (46,495) (46,495) Minority interest - DaVinciRe 44,311  44,311  Other items, net (32,271) (32,271) Net realized losses on investments   (3,414)   (3,414)   Net loss attributable to common shareholders $ 141,679  $ (71,011)   Net claims and claim expenses incurred - current accident year $ 917,525  $ 301,922  $ 1,219,447  Net claims and claim expenses incurred - prior years   (237,274)   (8,997)   (246,271)   Net claims and claim expenses incurred - total $ 680,251  $ 292,925  $ 973,176    Net claims and claim expense ratio - accident year   143.9%   86.0%   123.4%   Net claims and claim expense ratio - calendar year 106.7% 83.4% 98.4% Underwriting expense ratio   17.4%   33.5%   23.1%   Combined ratio   124.1%   116.9%   121.5%   (1) Reinsurance segment gross premiums written excludes $24.3 million of premiums assumed from the Individual Risk segment. RenaissanceRe Holdings Ltd. and Subsidiaries Unaudited Supplemental Financial Data (in thousands of United States Dollars)                     Three months ended Nine months ended Gross Premiums Written September 30, 2006 September 30, 2005 % Change  September 30, 2006 September 30, 2005 % Change    Renaissance catastrophe premiums $ 61,219  $ 109,257  (44.0%) $ 690,472  $ 501,198  37.8% Renaissance specialty premiums   19,645    85,320  (77.0%)   167,611    365,067  (54.1%)   Total Renaissance premiums   80,864    194,577  (58.4%)   858,083    866,265  (0.9%)   DaVinci catastrophe premiums 10,400  18,814  (44.7%) 319,254  131,627  142.5% DaVinci specialty premiums   250    1,080  (76.9%)   23,567    25,202  (6.5%)   Total DaVinci premiums   10,650    19,894  (46.5%)   342,821    156,829  118.6%   Total Reinsurance premiums (1) 91,514  214,471  (57.3%) 1,200,904  1,023,094  17.4% Individual Risk premiums   166,238    168,319  (1.2%)   547,791    497,512  10.1%   Total premiums $ 257,752  $ 382,790  (32.7%) $ 1,748,695  $ 1,520,606  15.0%   Total specialty premiums $ 19,895  $ 86,400  (77.0%) $ 191,178  $ 390,269  (51.0%)   Total catastrophe premiums $ 71,619  $ 128,071  (44.1%) $ 1,009,726  $ 632,825  59.6%   Gross Premiums Written Analysis (2)   Total catastrophe premiums $ 71,619  $ 128,071  (44.1%) $ 1,009,726  $ 632,825  59.6%   Catastrophe premiums written on behalf of our joint venture, Top Layer Re   1,189    477  149.3%   51,244    59,908  (14.5%)   Managed catastrophe premiums 72,808  128,548  (43.4%) 1,060,970  692,733  53.2%   Managed premiums assumed for fully-collateralized joint ventures - Renaissance (3,046) -  -  (102,967) -  -    Managed premiums assumed for fully-collateralized joint ventures - DaVinci   -    -  -    (11,332)   -  -    Managed catastrophe premiums, net of fully-collateralized joint ventures $ 69,762  $ 128,548  (45.7%) $ 946,671  $ 692,733  36.7%   (1) Reinsurance gross premiums written excludes $31.8 million and $11.1 million of premiums assumed from the Individual Risk segment for the three months ended September 30, 2006 and 2005, respectively, and $68.5 million and $24.3 million of premiums assumed from the Individual Risk segment for the nine months ended September 30, 2006 and 2005, respectively.   (2) See Comments on Regulation G. 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 income (loss)” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. "Operating income (loss)” as used herein differs from "net income (loss) available (attributable) to common shareholders", which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized gains and losses on investments. In addition, the Company's management believes that "operating income (loss)” 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, which is not considered by management to be a relevant indicator of business operations. The Company also uses "operating income (loss)” to calculate "operating income (loss) per common share” and "operating return on average common equity, annualized.” The following is a reconciliation of: 1) net income (loss) available (attributable) to common shareholders to operating income (loss) available (attributable) to common shareholders; 2) net income (loss) available (attributable) to common shareholders per common share to operating income (loss) available (attributable) to common shareholders per common share; 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 U.S. dollars, except for per share amounts) September 30, 2006 September 30, 2005 September 30, 2006 September 30, 2005     Net income (loss) available (attributable) to common shareholders $ 251,112  $ (287,296) $ 560,500  $ (71,011) Adjustment for net realized (gains) losses on investments (4,151) (5,192) 36,953  3,414    Operating income (loss) available (attributable) to common shareholders $ 246,961  $ (292,488) $ 597,453  $ (67,597)     Net income (loss) available (attributable) to common shareholders per common share - diluted $ 3.48  $ (4.07) $ 7.79  $ (1.01) Adjustment for net realized (gains) losses on investments (0.06) (0.07) 0.51  0.05    Operating income (loss) available (attributable) to common shareholders per common share - diluted $ 3.42  $ (4.14) $ 8.30  $ (0.96)     Return on average common equity, annualized 46.3% (53.3%) 37.3% (4.4%) Adjustment for net realized (gains) losses on investments (0.7%) (0.9%) 2.5% 0.2%   Operating return on average common equity, annualized 45.6% (54.2%) 39.8% (4.2%)                   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 Re 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.